If autonomous investment increases by 100 and government purchases decrease by 100, which of the following is true?
A) income will increase by 100
B) income will increase by 200
C) income will increase by the multiplier times 100
D) income will decrease by the multiplier times 100
E) income will not change
Correct Answer:
Verified
Q15: In a Keynesian model of income determination,
Q16: Assume a model with no government or
Q17: Total autonomous spending
A)is dependent on the level
Q18: Assume a simple model of the expenditure
Q19: In a model with no government or
Q21: Assume a model with an income tax
Q22: If the savings function is S =
Q23: Assume that the savings function is of
Q24: Assume a model with no foreign sector,
Q25: An increase in government spending will
A)not affect
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