Which of the following would not lower equilibrium GDP in the Keynesian 45° diagram?
A) An increase in household savings
B) A decrease in government expenditure
C) An increase in exports
D) A decrease in investment
Correct Answer:
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Q4: A theory of household consumption that assumes
Q5: The key difference between the Keynesian theory
Q6: The MPS is
A) the fraction of a
Q7: Which of the following factors will cause
Q8: Which of the following would not raise
Q10: If the MPS is 0.4, and savings
Q11: If the MPC is 0.8, and savings
Q12: When Richard's income is £20,000 he saves
Q13: The change in imports caused by a
Q14: Income increased by £1,000 and imports increased
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