In the Keynesian Model,what Impact Will an Increase in Interest

question 55

Multiple Choice

In the Keynesian model,what impact will an increase in interest rates have on consumption?

• A)It will increase current consumption and reduce current savings.
• B)It will reduce current consumption due to higher monthly payments on debt.
• C)It will increase current autonomous consumption as interest income rises.
• D)It will reduce future consumption due to higher interest payments.

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