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

question 5

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:

Accounts Payable

A liability to a creditor, carried on open account, usually for purchases of goods and services.

Notes Payable

Financial obligations represented by formal written agreements to pay specified amounts at determined future dates.

Salaries and Wages Payable

Salaries and wages payable are current liabilities recorded on a company's balance sheet, representing the amount owed to employees for work performed that has not yet been paid.

Taxes Payable

Liabilities owed to government entities, representing taxes due to be paid by individuals or organizations.