Keynesian theory is based on the belief that
A) saving and consumption are influenced primarily by real current income.
B) saving is influenced primarily by the interest rate.
C) planned savings equal planned investment only at full employment.
D) full employment is automatically attained in any economy.
Correct Answer:
Verified
Q6: Suppose when real disposable income is $5,000,planned
Q7: If consumption spending exceeds income,we have
A)dissaving.
B)hoarding.
C)savings.
D)investment.
Q8: Figure 9-1 Q9: The relationship between households' planned consumption expenditures Q11: Figure 9-1 Q12: According to Keynes,an individual's level of saving Q14: Dissaving occurs when Q15: At a level of real disposable income Q45: The consumption function shows Q60: Saving equals
A)income exceeds consumption.
B)planned savings is
A) a positive relationship
A) disposable income minus taxes.
B) disposable
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