If you were a Keynesian economist, you would
a. believe that saving is always detrimental to our economic health
b. believe that increased saving always leads to lower national income0
c. believe that increased investment is undesirable
d. see economic trouble ahead if saving increases unattended by a complementary increase in intended investment
e. actively try to achieve the paradox of thrift for our national economy
D
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Suppose the price of a tie rises from $45 to $55. Using the midpoint method, what is the percentage change in price?
A) 10 percent B) -10 percent C) 20 percent D) -20 percent E) 100 percent
The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if the price of a steak dinner fell?
A) It would rotate inward around the vertical intercept, 10 lobster dinners. B) It would rotate outward around the vertical intercept, 10 lobster dinners. C) It would rotate inward around the horizontal intercept, 20 steak dinners. D) It would rotate outward around the horizontal intercept, 20 steak dinners.
A dirty float is an example of ________
A) a fixed exchange rate system B) a flexible exchange rate system C) a revaluation D) a currency board
According to the Keynesian model, the government can increase spending or cut taxes to close a recessionary gap
a. True b. False Indicate whether the statement is true or false