In the simple Keynesian model,there are three simplifying assumptions.One of these assumptions is:
A) no consumption
B) no investment
C) no exports or imports
D) a and b
E) a,b,and c

Question

Quizplus · Accepted Answer

The simple Keynesian model assumes no exports or imports, which means that the economy is closed and only domestic factors are considered. It does not assume no consumption or investment, so options A and B are incorrect. Option D is also incorrect as it includes both A and B. Option E is incorrect as it includes all three assumptions.

In the Simple Keynesian Model,there Are Three Simplifying Assumptions