According to the Keran model, the four active policy variables affecting the economy include all of the following except:

Question

Quizplus · Accepted Answer

The Keran model focuses on how government policies, specifically fiscal policy, the corporate tax rate, and monetary policy, influence the economy. Corporate earnings, while important for the economy, are not considered an active policy variable in this model. They are more of an outcome influenced by these policies rather than a policy lever itself.

According to the Keran Model, the Four Active Policy Variables