The Equilibrium Condition in the Keynesian-Cross Analysis in a Closed

question 104

Multiple Choice

The equilibrium condition in the Keynesian-cross analysis in a closed economy is:

• A) income equals consumption plus investment plus government spending.
• B) planned expenditure equals consumption plus planned investment plus government spending.
• C) actual expenditure equals planned expenditure.
• D) actual saving equals actual investment.

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Definitions:

Calendar Year End

The end of an accounting period that concludes on December 31st.

Forward Contract

A financial derivative contract between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Canadian Dollars

The currency of Canada, represented by the symbol CAD or C$.

Foreign Exchange Risk

The possibility of losing value due to changes in currency exchange rates.