In the simplest Keynesian model, planned investment is assumed to be
a. positively related to income.
b. negatively related to income.
c. constant.
d. absent.
c. constant.
You might also like to view...
One result of the public choice model is that most economists believe that
A) policymakers may have incentives to intervene in the economy in ways that do not promote economic efficiency. B) the voting paradox will prevent voters from selecting the best person for public office. C) when market failure occurs, government intervention will always lead to a more efficient outcome. D) government intervention will always result in a reduction in economic efficiency in regulated markets.
Autonomous consumption is defined as
A) the level of real consumption spending that is independent of real disposable income. B) the real consumption spending by the autonomous government. C) the level of real consumption spending that is equal to real disposable income. D) the consumption of foreign-made goods independent of exchange rates.
The difference between a change in quantity supplied and a change in supply is that a change in:
a. quantity supplied is caused by a change in a good's own, current price, while a change in supply is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes. b. supply is caused by a change in a good's own, current price, while a change in the quantity supplied is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes. c. quantity supplied is a change in the amount people want to sell, while a change in supply is a change in the amount they actually sell. d. supply and a change in the quantity supplied are the same thing.
The circular flow diagram of economic activity is a model of the
a. flow of goods, services, and payments between households and firms. b. influence of government on business behavior. c. role of unions and government in the economy. d. interaction among taxes, prices, and profits.