Consumption spending is __________ and investment spending is __________ in the Keynesian model.
A) autonomous; autonomous
B) autonomous; induced
C) induced; autonomous
D) induced; induced

Question

Quizplus · Accepted Answer

In the Keynesian model, consumption spending is induced, meaning it is influenced by changes in disposable income. Investment spending, on the other hand, is assumed to be autonomous, meaning it is influenced by factors other than current income or spending levels.

Consumption Spending Is __________ and Investment Spending Is __________ in the Keynesian

Consumption Spending Is and Investment Spending Is in the Keynesian