Use the Following to Answer Questions

question 115

Multiple Choice

Use the following to answer questions :
Exhibit: Keynesian Cross and Loanable Funds

-(Exhibit: Keynesian Cross and Loanable Funds) Both graphs illustrate the inverse relationship between the equilibrium interest rate and the equilibrium level of income.The economy moves from equilibrium A to equilibrium B in the Keynesian-cross diagram as a result of a(n) ______ that shifts planned expenditures.

• A) increase in income
• B) decrease in income
• C) increase in the interest rate
• D) decrease in the interest rate

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Definitions:

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