In the Simple Keynesian Model,equilibrium Exists When

question 22

Multiple Choice

In the simple Keynesian model,equilibrium exists when

• A)actual investment equals realized investment.
• B)exports equal imports.
• C)savings is equal to government spending plus desired investment minus taxes.
• D)national product is equal to consumption minus desired investment plus government spending.
• E)None of the above

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Definitions:

Exchange Rate Risk

The potential for loss due to fluctuations in the exchange rates between currencies, affecting companies that engage in international business.

International Operations

Business activities conducted in more than one country, involving cross-border transactions of goods, services, or capital.

International Fisher Effect

An economic theory stating that the difference in nominal interest rates between two countries is proportional to the expected change in the exchange rate between their currencies.

Expected Changes

Expected changes refer to anticipated modifications in conditions or variables, often used in forecasting scenarios in finance or economics.