According to the Keynesian Model, an Increase in Autonomous Investment

question 116

Multiple Choice

According to the Keynesian model, an increase in autonomous investment leads to

• A)a more than proportional decrease in real Gross Domestic Product (GDP).
• B)a less than proportional decrease in real Gross Domestic Product (GDP).
• C)a proportional increase in real Gross Domestic Product (GDP).
• D)a reduction in taxes, autonomous government spending, and a fall in real Gross Domestic Product (GDP).

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