In the Keynesian-Cross Model, If Government Purchases Increase by 100

question 98

Multiple Choice

In the Keynesian-cross model, if government purchases increase by 100, then planned expenditures ______ for any given level of income.

• A) increase by 100
• B) increase by more than 100
• C) decrease by 100
• D) increase, but by less than 100

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Definitions:

Introvert

A person predominantly concerned with their own thoughts and feelings rather than with external things.

Extrovert

An individual who is outgoing, sociable, and thrives in social situations, often feeling energized by interactions with others.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, associated with reasoning, planning, parts of speech, movement, emotions, and problem-solving.

Reciprocal Determinism

A concept in psychology suggesting that a person's behavior both influences and is influenced by personal factors and the social environment.