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When Output Is Higher Than the Intersection of the Keynesian

Question 11

Multiple Choice

When output is higher than the intersection of the Keynesian AE and the 45 degree line,which of the following can we can expect to happen?


A) savings to be negative and consumption to fall
B) inventories to rise and output to fall
C) consumers to expect higher incomes and consumption to rise
D) inventories to fall and output to rise

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