Use the following to answer questions :
Exhibit: Keynesian Cross and Loanable Funds
-(Exhibit: Keynesian Cross and Loanable Funds) Both graphs illustrate the inverse relationship between the equilibrium interest rate and the equilibrium level of income.Planned expenditures increase in the Keynesian-cross model as a result of ______,and saving increases in the loanable funds model as a result of ______.
A) an increase in taxes; an increase in real money balances
B) a decrease in the interest rate; an increase in income
C) a decrease in velocity; an increase in government spending
D) an increase in the interest rate; a decrease in income
Correct Answer:
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Q40: The simple investment function shows that investment
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A)
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Q61: Use the following to answer questions :
Exhibit:
Q62: The IS curve may be interpreted as
Q64: In the loanable funds model,a decrease in
Q65: In the Keynesian-cross model,as the interest rate
Q67: If the interest rate is above the
Q74: Use the following to answer questions :
Exhibit:
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