The Keynesian model suggests that .... should be preferred over .... since the ..... is larger than the ..... a. fiscal policy / monetary policy / unplanned changes in inventories / marginal propensity to consume. b. fiscal policy / monetary policy / impact of money supply / marginal propensity to consume. c. government sprending / tax cuts / tax multiplier / government-spending multiplier. d. government sprending / tax cuts / government-spending multiplier / tax multiplier. e. monetary policy / fiscal policy / impact of money supply / marginal propensity to consume.

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A: 5. Given : MPC = 60% = 0.60Thus,Multiplier(K)= 1/(1 - MPC) = 1/(1 - 0.60) K = 2.5 Also, K = Change…

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Q: cost of a recession from the keynesian spending model perspective

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Q: Q.1 EXPLAIN WHY GOVERNMENT SPENDING IS REGARDED AS AUTONOMOUS IN A KEYNESIAN MODEL WITH GOVERNMENT…

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A:

Q: In the Keynesian-Cross model, if autonomous investment increases by 100 and government transfers…

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A: Fiscal multiplier =2 Increase government spending by 100