In Keynesian Analysis, If Investment Remains Constant When Income Changes

question 231

Multiple Choice

In Keynesian analysis, if investment remains constant when income changes, the investment is called

• A)planned.
• B)autonomous.
• C)unplanned.
• D)discretionary.

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Definitions:

Accounts Payable

The amount of money that a company owes to its creditors or suppliers for goods and services received but not yet paid for.

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses.

Cash Ratio

A liquidity metric that measures a company’s ability to cover its short-term liabilities with its cash and cash equivalents.

Current Ratio

A measure of a business's capability to settle short-term debts, calculated as the ratio of current assets to current liabilities.