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In the Keynesian Model, Consumption

Question 390

Multiple Choice

In the Keynesian model, consumption


A) is positively related to the interest rate but negatively related to a temporary change in income.
B) is positively related to income but saving is not systematically related to either income or interest rates.
C) and saving are negatively related to the real interest rate.
D) and saving are positively related to income.

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