In the Keynesian model, everything else equal, a higher level of income
a. increases money demand and reduces the interest rate.
b. increases money demand and increases the interest rate.
c. increases savings and decreases the interest rate.
d. increases investment and has no effect on the interest rate.
e. both b and c.
E
Economics
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Which of the following equations describes the government deficit?
A. G - TR - INT - T B. G + TR - INT - T C. G + TR + INT - T D. G - TR + INT - T
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