According to the Keynesian Model, an Increase in Autonomous Investment

question 155

Multiple Choice

According to the Keynesian model, an increase in autonomous investment leads to

• A) a more than proportional increase in real Gross Domestic Product (GDP).
• B) a less than proportional increase in real Gross Domestic Product (GDP).
• C) a proportional increase in real Gross Domestic Product (GDP).
• D) a reduction in taxes, autonomous government spending, and a fall in real Gross Domestic Product (GDP).

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Definitions:

Nationalization

The process of transforming private assets into public assets by bringing them under the control of the government.

Public Purpose

The legal justification for government actions aimed at benefiting the community or public at large.

Just Compensation

Compensation that is fair and adequate, especially in the context of eminent domain where property is taken for public use.

CISG

The United Nations Convention on Contracts for the International Sale of Goods is a treaty designed to create a consistent legal framework for international trade.