Multiple Choice
At equilibrium in the simple Keynesian model,income is $6 million and consumption spending is $5 million.Which of the following is correct?
A) Investment is $1 million.
B) There is no saving in this economy.
C) The economy will go into disequilibrium because consumption is not equal to income.
D) The information provided is insufficient to determine the level of investment spending.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: If your income is $35,000 and the
Q53: The 45-degree line in the Keynesian model
Q56: In the simple Keynesian model of the
Q57: Suppose economists observe that an increase in
Q91: How did classical economists think that the
Q92: Which of the following illustrates the paradox
Q100: If a government always balances its budget:<br>A)
Q103: Between 1929 and 1933, government spending _
Q226: In the simple Keynesian model, if desired
Q235: Exports are injections and imports are withdrawals