Which of the Following Equations Is NOT True at Equilibrium

question 137

Multiple Choice

Which of the following equations is NOT true at equilibrium in the simple Keynesian model?

• A) I = S
• B) AE > Y
• C) Y = C + S
• D) AE = C + I

---

Definitions:

Proposed Project

A structured series of related activities scheduled for completion within a set period, while staying within defined budgetary and other restrictions.

Final Cash Flow

The last payment received from an investment, including the return of principal plus any final interest or dividend payments.

Inventory

The items and substances that a company possesses with the ultimate aim of selling them or using them in manufacturing.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, which can include interest on bonds, loans, convertible debt, and lines of credit.