In the standard consumption function of C = a + bY, the MPC is
A) Y.
B) bY.
C) a.
D) b.
Correct Answer:
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Q2: According to Keynes,
A) prices decline as inventories
Q3: Assume a consumption function of the following
Q4: Assume a consumption function of the following
Q5: If total consumption spending is $1,000, the
Q6: In the Keynesian model when desired investment
Q8: Keynesian theory emphasizes
A) aggregate supply.
B) rational expectations.
C)
Q9: Keynes argued that if the economy is
Q10: In a simple Keynesian model, an increase
Q11: Which of the following is not reflected
Q12: The marginal propensity to consume is assumed
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