In the simple Keynesian model which has no taxes and a saving function which is in the form S = -80 + .20Y, a $200 increase in desired investment leads to an increase in equilibrium income of
A) $40.
B) $100.
C) $400.
D) $1000.
D
Economics
You might also like to view...
The costs of the actual bargaining process are called
A) search costs. B) collectivization costs. C) negotiation costs. D) monitoring and enforcement costs.
Economics
Which field of economics studies how the number of firms affects the prices in a market and the efficiency of market outcomes?
a. macroeconomics b. industrial organization c. labor economics d. monetary economics
Economics
Aggregate demand is calculated by which of the following equations?
a. C + I + G + (X + M) b. C + I + G + (X – M) c. C + M + X + (G – I) d. C + X + M + (I – G)
Economics
In order to change the money supply, the Fed might use all of the following tools except:
A. open market operations. B. discount window. C. reserve requirement. D. deficit spending.
Economics