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    Exam 11: Consumption, Real GDP, and the Multiplier
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    In the Simple Keynesian Model, Why Does Actual Investment Spending
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In the Simple Keynesian Model, Why Does Actual Investment Spending

Question 251

Question 251

Essay

In the simple Keynesian model, why does actual investment spending have to equal saving in the absence of the government and foreign sectors?
Is this true only for the equilibrium?
Explain.

Correct Answer:

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Real Gross Domestic Product (GDP)equals ...

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