Question

According to the Keynesian model, an increase in autonomous investment leads to

A) a more than proportional decrease in real Gross Domestic Product (GDP).

B) a less than proportional decrease in real Gross Domestic Product (GDP).

C) a proportional increase in real Gross Domestic Product (GDP).

D) a reduction in taxes, autonomous government spending, and a fall in real Gross Domestic Product (GDP).

Answer

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