In the simple Keynesian model, investment is taken as autonomous, which means

it does not depend on the level of incomeCorrect answerYour answerit rises with incomeCorrect answerYour answerit is decided by the governmentCorrect answerYour answerit is always zeroCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Planned investment is fixed at Ī whatever the level of income, so its line is horizontal.

Concept: Autonomous investment
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsPlanned investment; ex ante and ex post

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In the simple Keynesian model, investment is taken as autonomous, which means

Explanation