A Key Element of Keynesian Analysis Relates To

question 8

Multiple Choice

A key element of Keynesian analysis relates to:

• A) policies to reduce the difference between planned and actual spending and investment
• B) using taxation as a means to influence the interest rate in an economy.
• C) The similarities between short term fluctuations in macroeconomic variables and how they behave in the long run
• D) the distinction between planned spending and investment and actual spending and investment

---

Definitions:

Amortization

The process of spreading the cost of an intangible asset over its useful life.

Accrued Interest

Accrued Interest is the interest that has accumulated on a loan or bond since the last interest payment was made but has not yet been paid out.

Straight-Line Method

An accounting method of depreciation where a fixed amount is charged annually over the useful life of the asset.