Answer to Question #251209 in Economics for Millicent

Question

One of the following is not assumption of the Keynesians explanation for income determination in a closed economy without government

Select one:

a. Autonomous consumption is not income inelastic

b. Government spending is exogenously determined

c. None of options are correct

d. Induced consumption is not related to the level of income

Answer 1

b. Government spending is exogenously determined