In the Keynesian-Cross Model, Actual Expenditures Differ from Planned Expenditures

question 108

Multiple Choice

In the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of:

• A) liquidity preference.
• B) the government-purchases multiplier.
• C) unplanned inventory investment.
• D) real money balances.

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Definitions:

Self-Interest

The concern for one's own advantage and well-being, with behavior guided primarily by personal benefits.

Psychological Egoist

A theory or belief that posits individuals are inherently driven by self-interest, and all actions, even those appearing altruistic, are ultimately motivated by personal gain.

Motivated

Having a strong willingness or drive to do something.

Own Interests

Pursuits or objectives that serve an individual's personal benefit or advantage.