In a simple Keynesian model, a decrease in income leads to a decrease in
A) consumption.
B) investment.
C) the price level.
D) the money supply.

Name: In a simple Keynesian model, a decrease in income leads to a decrease in A) consumption. B) investment. C) the price level. D) the money supply.
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

In a simple Keynesian model, consumption is directly related to income. As income decreases, consumption decreases as well.

In a Simple Keynesian Model, a Decrease in Income Leads