In the Keynesian model, the most important influence on planned consumption is
a. the interest rate.
b. expectations.
c. disposable income.
d. the price level.
c. disposable income.
You might also like to view...
A 401(k) account means that the maximum amount of savings that can be deposited is $401,000.
A. True B. False C. Uncertain
If the consumption function is C = 25 + 0.9y and income increases by $100, then consumer spending will increase by
A) $10. B) $25. C) $90. D) $115.
Assuming a fixed amount of taxes and a closed economy, calculate the value of the government purchases multiplier, the tax multiplier, and the balanced budget multiplier if the marginal propensity to consume equals 0.75
What will be an ideal response?
The 2006-2008 period can be accurately described as a time of stagflation
a. True b. False Indicate whether the statement is true or false