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Using the Keynesian Approach, If Leakages from the Spending Stream

Question 42

Multiple Choice

Using the Keynesian approach, if leakages from the spending stream are less than injections, the current level of output is:


A) less than the equilibrium level of output, and will increase.
B) less than the equilibrium level of output, and will decrease.
C) greater than the equilibrium level of output, and will increase.
D) greater than the equilibrium level of output, and will decrease.

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