Multiple Choice
In the Keynesian two sector model, when AD = AS, then:
A) sB) s>i
C) s=i
D) i=0
Correct Answer:

Verified
Correct Answer:
Verified
Q4: In the equation C = 60 +
Q5: When disposable income risesfrom Rs 500 to
Q6: Schedule that expressesrelationship between rate of interest
Q7: Rate of change in savings to change
Q8: According to Keynes, saving is:<br>A)private virtue but
Q10: Keynes considered subjective and objective factors:<br>A)important determinants
Q11: MEC isinversely related to:<br>A)prospective yield<br>B)supply price<br>C)investment<br>D)rate of
Q12: According to Keynes the most important determinant
Q13: In Keynesian terminology, investment means:<br>A)financial investment<br>B)real investment<br>C)induced
Q14: The MEC increases when:<br>A)capitalstock increases<br>B)capitalstock decreases<br>C)capital remains