In a Classical Model with Fixed Factors of Production and Flexible

question 55

Multiple Choice

In a classical model with fixed factors of production and flexible prices, the amount of consumption spending depends on _____, the amount of investment spending depends on _____, and the amount of government spending is determined _____.

• A)the interest rate; disposable income; by tax revenue
• B)the real wage; the real rental price of capital; by factor prices
• C)labour's share of output; capital's share of output; by the interest rate
• D)disposable income; the interest rate; exogenously

---

Definitions:

Ethical System

A set of principles or guidelines designed to direct individual or collective behavior towards moral and ethical decision-making.

Motor Oil

A lubricant used in internal combustion engines to reduce wear and clean the engine from sludge and varnish.

Julia

A high-level, high-performance dynamic programming language designed primarily for technical and scientific computing.

Peace and Harmony

A state of tranquility and agreement, free from conflict or discord among individuals or groups.