In the Keynesian-Cross Model, the Equilibrium Level of Income Is

question 25

Multiple Choice

In the Keynesian-cross model, the equilibrium level of income is determined by:

• A) the factors of production.
• B) the money supply.
• C) planned spending.
• D) liquidity preference.

---

Definitions:

Redeemed

In financial terms, to exchange a financial instrument like a bond or coupon for its value in cash or goods; also refers to utilizing a reward or benefit.

Compounded Semi-Annually

Refers to the process of applying interest to a principal sum twice a year, leading to interest being earned on previously earned interest.

Lump Sum Payment

A single payment made at a particular time, as opposed to multiple payments made over time.

Compounded Monthly

A financial term describing the process where interest earned is added to the principal each month, leading to increased interest in the next month.