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In the Simple Keynesian Model,there Are Three Simplifying Assumptions

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In the simple Keynesian model,there are three simplifying assumptions.One of these assumptions is:


Definitions:

Imagination Inflation

The phenomenon where vividly imagining an event can increase confidence that it actually occurred.

Source Amnesia

A memory disorder where an individual is unable to remember the source of a specific memory while retaining the factual content.

Sensory Memory

It is the shortest-term element of memory which acts as a buffer for stimuli received through the senses, lasting typically less than a second.

Proactive Interference

A phenomenon where old information hinders the recall of newly learned information.

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