Which of the following is NOT a simplifying assumption in the simple Keynesian model?
A) There is no foreign trade.
B) Net investment and gross investment are equal.
C) All profits are distributed to the business owners.
D) Real disposable income equals government purchases of goods and services.
D
Economics
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Larry's Lathe-makers Limited produces lathes, which are purchased by furniture manufacturers all over the world. The standard lathe depreciates over a twenty-five-year period. In the national income accounts, the lathes are classified as
A) inventory. B) raw materials. C) capital goods. D) intermediate goods.
Economics
Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1000 - 5000rw. If rw = 0.05, then net exports equal
A) 100. B) 50. C) -50. D) -100.
Economics