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    Principles of Macroeconomics Study Set 11
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    Exam 8: Aggregate Expenditure and Equilibrium Output
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    In the Simple Keynesian Model an Increase in Consumer Spending
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In the Simple Keynesian Model an Increase in Consumer Spending

Question 37

Question 37

Essay

In the simple Keynesian model an increase in consumer spending will increase investment, and a decrease in consumer spending will decrease investment. Critically evaluate this theory.

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