In the Keynesian model, government spending is considered
A) a positive function of real GDP.
B) a negative function of real GDP.
C) to be a negative function of the real interest rate.
D) to be autonomous.

Question

Quizplus · Accepted Answer

Government spending in the Keynesian model is considered to be autonomous, meaning it is determined by government policy decisions and not directly influenced by the current level of real GDP or the real interest rate.

In the Keynesian Model, Government Spending Is Considered