n the context of the Keynesian cross model, if firms notice that their unplanned inventory investment is consistently positive, which of the following is most likely to be true?A.The marginal propensity to consume is zero.B.other components of expenditure remain constant, Government spending has decreased significantly.C.both a and bD.n

n the simple two-sector Keynesian income-expenditure model with no government or external sector, assuming actual and planned saving are always equal, when aggregate output is less than aggregate planned expenditureGroup of answer choicesany unplanned change in inventories will be negativeactual investment is greater than planned investmentplanned saving is greater than planned investmentactual saving is equal to planned investment

In the basic Keynesian model, all statements below except for one are true. Which is the incorrect statement? Group of answer choicesPlanned aggregate expenditure is always equal to output in equilibrium. Planned government spending always equals actual government spending.Planned net exports always equal actual net exports.Planned investment always equals actual investment.Planned consumption always equals actual consumption.

Adding an external sector to the Keynesian income-expenditure model implies that for equilibrium, in terms of leakages and injectionsGroup of answer choicesplanned saving must equal planned investmentplanned saving must equal planned investment, government expenditure must equal total taxation and exports must equal imports it is not necessary for planned saving and planned investment to be equal but exports must be equal to imports it is not necessary for planned saving and planned investment to be equal but they are unequal then either the budget or the trade balance or both should not be equal to zero.

In the simple Keynesian model, which of the following statements is false? Group of answer choices An increase in the marginal propensity to save will reduce the level of income in the economy. The reduction in output from an increase in taxation is larger the smaller is the marginal propensity to consume. An increase in lump sum taxation accompanied by an increase in government spending of the same size will increase output. The equilibrium level of output does not depend upon the size of the money multiplier.

When there is an unplanned decrease in inventories________. a. a firm experiences much higher sales than expected. b. actual inventory investment equals planned inventory investment. c. actual inventory investment is less than planned inventory investment. d. actual inventory investment is greater than planned inventory investment.