At Equilibrium in the Simple Keynesian Model,income Is $6 Million

question 96

Multiple Choice

At equilibrium in the simple Keynesian model,income is $6 million and consumption spending is $5 million.Which of the following is correct?

• A) Investment is $1 million.
• B) There is no saving in this economy.
• C) The economy will go into disequilibrium because consumption is not equal to income.
• D) The information provided is insufficient to determine the level of investment spending.

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