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

Name: In the simple Keynesian model, if people earn $4 billion and spend $3.5 billion on consumption goods, then saving is $0.5 billion.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

In the simple Keynesian model, saving is the portion of income not spent on consumption. If people earn $4 billion and spend $3.5 billion, the remaining $0.5 billion is saved.

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