In the Keynesian-Cross Model, If Government Purchases Increase by 250

question 67

Multiple Choice

In the Keynesian-cross model, if government purchases increase by 250, then the equilibrium level of income:

• A) increases by 250.
• B) increases by more than 250.
• C) decreases by 250.
• D) increases, but by less than 250.

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Nonprofit Organization

An organization that operates for the collective, public, or social benefit, reinvesting any surplus revenues in the mission of the organization rather than distributing them as profit or dividends.

Legislation

A system of laws suggested or enacted by a governmental body.

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