In the Keynesian Framework,as Long as Output Is ________ the Equilibrium

question 31

Multiple Choice

In the Keynesian framework,as long as output is ________ the equilibrium level,unplanned inventory investment will remain negative and firms will continue to ________ production.

• A)below;lower
• B)above;lower
• C)below;raise
• D)above;raise

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Definitions:

Security Market Line

A line that depicts the relationship between the expected return of a market security and its risk as measured by beta.

Risk-Free Rate

The theoretical return on an investment with zero risk, serving as a benchmark for evaluating other investments.

Market Rate

The typical or prevailing price level for goods or services in a competitive market, or the interest rate available for loans and deposits in the financial market.

Portfolio Beta

A measure that reflects the sensitivity of a portfolio's returns to movements in the market returns, representing the portfolio's systematic risk.