In the Keynesian model, if planned saving is greater than planned investment,
a. the economy will expand.
b. unemployment will rise.
c. the marginal propensity to consume will decline.
d. the rate of interest will rise.
b. unemployment will rise.
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Refer to Figure 7-4. With insurance and a third-party payer system, what price do doctors receive for medical services?
A) $25 B) $40 C) $55 D) >$55
An option that can be exercised at any time up to maturity is called
A) a swap. B) a stock option. C) an European option. D) an American option.
An oligopoly is a market structure in which there
a. are no good substitutes produced within the industry, giving each firm substantial market share b. are perfect substitutes produced within the industries, giving each firm only partial market share c. are monopolies competing to create monopolistic competition in the short run and oligopoly in the long run d. are at least 25 firms producing an identical good e. are only a few firms in the industry
Assume the central bank decides to raise the discount rate. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with supply of real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the left. d. Start the analysis in the real credit market with demand for real credit shifting to the right. e. Start the analysis in the real credit market with supply of real credit shifting to the left.