In the Keynesian Model,government Spending Is Considered

question 55

Multiple Choice

In the Keynesian model,government spending is considered

• A)a positive function of real national income.
• B)a negative function of real national income.
• C)to be a negative function of the real interest rate.
• D)to be autonomous.

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Definitions:

Federal Funds Rate

The Federal Funds Rate is the interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, set by the Federal Reserve.

Underwriting

involves the process of evaluating and assuming risk in financial transactions, notably in insurance and investments.

Insurance Company

A financial institution that provides coverage against specified risks in exchange for premiums, offering policies for health, life, property, and other forms of insurance.

Home Mortgage Loans

Loans provided by financial institutions to individuals for the purpose of purchasing residential properties, secured by the property itself.