A piece of evidence in favor the Keynesian model would be that
A)investment is very sensitive to changes in tax rates.
B)changes in aggregate income cause changes in investment,but not vice versa.
C)the aggregate price level is negatively correlated with income.
D)all of the above.

Question

Quizplus · Accepted Answer

The Keynesian model emphasizes the importance of aggregate demand in determining economic output and argues that changes in aggregate income lead to changes in investment (but not necessarily the other way around), which aligns with choice B.

A Piece of Evidence in Favor the Keynesian Model Would