The Keynesian Model Is Based on the Idea That

question 167

Multiple Choice

The Keynesian model is based on the idea that

• A) saving depends only on the interest rate.
• B) both consumption and saving are positively related to real disposable income.
• C) consumption is unrelated to the level of real Gross Domestic Product (GDP).
• D) both consumption and saving are unrelated to the level of real Gross Domestic Product (GDP).

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Definitions:

Negotiable Instrument

A voucher guaranteeing that a specified sum of money will be paid, either when demanded or at a certain time, with the payer’s identity specified on the voucher.

Substitute

In a legal or contractual context, to replace one obligation, duty, or individual with another.

Cash

represents money in the physical form of currency, such as coins and banknotes, used to purchase goods, services, or settle debts.

Certify

To officially recognize, verify, or declare something as true, accurate, or in compliance with certain standards.