The Keynesian model is based on the idea that
A) both consumption and saving are directly related to disposable income.
B) saving depends only on the interest rate.
C) consumption is unrelated to the level of real Gross Domestic Product (GDP).
D) both consumption and saving are unrelated to the level of real Gross Domestic Product (GDP).
A
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Which of the following activities is most likely to be counted in GDP?
A. Gail buys paper and crayons to donate to poor children in need of school supplies. B. Fran volunteers at the local veteran's hospital twice a month. C. Stu gave $5 to a homeless man he met in the park. D. Bud works hard five hours each week to make sure that his lawn always looks nice.
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for mustard and that bratwurst and mustard are complements. What panel describes what happens in this market when the price of bratwurst falls?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
Refer to Table 5.3. In order to weigh which of the job choices is riskiest, an individual should look at
A) the deviation, which is the difference between the probabilities of the two outcomes. B) the deviation, which is the difference between the dollar amounts of the two outcomes. C) the average deviation, which is found by averaging the dollar amounts of the two outcomes. D) the standard deviation, which is the square root of the average squared deviation. E) the standard deviation, which is the squared average square root of the deviation.
According to the substitution effect of labor supply, when the wage rate goes up:
A. it becomes more costly to consume leisure, so people will work more. B. it becomes less costly to consume leisure, so people will work more. C. the opportunity cost of enjoying leisure goes down. D. firms will hire more workers since people are more willing to work.