Injections in the Simple Keynesian Model Are Made Up of Business

question 155

True/False

Injections in the simple Keynesian model are made up of business investments in the economy.

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Definitions:

Open-market Purchase

The buying of securities by a central bank from the market to inject liquidity and encourage economic growth.

Aggregate Demand

The complete need for goods and services across an economy at an established price level within a specific period.

Government Spending

The total amount of money spent by the government on various services, infrastructure projects, and welfare programs.

Marginal Propensity

A measure of how much an individual's or household's consumption changes when their income changes by one unit.