In the Simple Keynesian Model,there Are Three Simplifying Assumptions

question 100

Multiple Choice

In the simple Keynesian model,there are three simplifying assumptions.Among these assumptions is:

• A) the price level is flexible
• B) no foreign sector
• C) the price level is constant until the economy reaches its full-employment level
• D) the money supply always rises
• E) b and c

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Definitions:

Store Fixtures

Pieces of equipment or furniture used in a store to display products or support retail operations.

Gain on Sale

Gain on sale refers to the profit made from selling an asset for more than its book value.

Indirect Method

A method for creating the cash flow statement by modifying net income according to non-cash activities and fluctuations in working capital.

Operating Activities

Activities directly related to the principal revenue-producing activities of an entity, detailed in the cash flow statement.