In the Keynesian Model, a $5 Billion Decrease in Autonomous

question 104

Multiple Choice

In the Keynesian model, a $5 billion decrease in autonomous planned investment leads to ________ in short-run equilibrium output.

• A)a $5 billion increase
• B)a greater than $5 billion decrease
• C)no change.
• D)a $5 billion decrease

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Definitions:

Continuous

A term describing processes or functions that proceed without interruption or cessation.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be distributed to common stockholders.

Cumulative Preferred Stock

A type of preferred stock that entitles the holder to receive dividends in arrears before common stockholders can receive any dividends.

Liability

Any financial obligation or debt that an entity is responsible for paying to another party.