In the simple Keynesian model, if people earn $4 billion and spend $3.5 billion on consumption goods, then savings is $0.5 billion.

Name: In the simple Keynesian model, if people earn $4 billion and spend $3.5 billion on consumption goods, then savings is $0.5 billion.
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In the simple Keynesian model, savings is equal to income minus consumption. Therefore, savings in this scenario would be $4 billion - $3.5 billion = $0.5 billion.

In the Simple Keynesian Model, If People Earn $4 Billion