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According to the Keynesian Approach, If Leakages from the Spending

Question 87

Multiple Choice

According to the Keynesian approach, if leakages from the spending stream exceed injections:


A) business inventories will decrease and the level of economic activity will increase.
B) business inventories will remain unchanged and the level of unemployment will decrease.
C) unplanned business inventories will accumulate and the level of economic activity will decrease.
D) unplanned business inventories will accumulate as the economy moves toward full employment.

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