In the simple Keynesian model, equilibrium exists when
a. actual investment equals realized investment.
b. exports equal imports.
c. savings is equal to government spending plus desired investment minus taxes.
d. national product is equal to consumption minus desired investment plus government spending.
e. None of the above
C
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A firm's market constraints include the conditions under which it can
A) convert inputs into outputs. B) buy its inputs and sell its outputs. C) issue stock. D) produce the inputs to production.
With a proportional tax
A) a poor household pays a larger percentage of its income in taxes than a rich one. B) a rich household pays a larger percentage of its income in taxes than a poor one. C) all households pay the same total amount of tax. D) all households pay the same percentage of their income as taxes.