In the Keynesian Aggregate Expenditure Model, the Equilibrium Level of Income

question 2

Multiple Choice

In the Keynesian aggregate expenditure model, the equilibrium level of income is achieved when

• A) actual saving equals actual investment.
• B) planned aggregate expenditures equal total output.
• C) consumption equals income times the marginal propensity to consume.
• D) the marginal propensity to consume equals planned output.

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