The Keynesian Model Is Based on the Idea That

question 354

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 directly related to 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).

---

Definitions:

Evolution of Beta

Refers to how the beta value of a security, indicating its volatility relative to the market, changes over time.

Forecast

A prediction or estimate of future events or trends, especially related to economic or weather conditions.

Last Year

A term that refers to the immediate past calendar year or the most recent complete fiscal year.

Well-Diversified Portfolio

A portfolio containing a wide variety of investments which aims to reduce risk by spreading investments across different assets.