The Keynesian-Cross Analysis Assumes Planned Investment

question 21

Multiple Choice

The Keynesian-cross analysis assumes planned investment:

• A) is fixed and so does the IS analysis.
• B) depends on the interest rate and so does the IS analysis.
• C) is fixed, whereas the IS analysis assumes it depends on the interest rate.
• D) depends on expenditure and so does the IS analysis.

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Definitions:

Episodic Buffer

A component of the working memory model that integrates information from different sources into a coherent episode.

Central Executive

A component of working memory model responsible for directing attention and coordinating cognitive processes.

Working Memory

The part of short-term memory that is concerned with immediate conscious perceptual and linguistic processing.

Stimulus-Independent Thought

Thoughts that occur without any direct external triggers, allowing the mind to wander or engage in internal reflection.