QuestionJune 14, 2025

37. Which of the following are the four components of spending in the Keynesian version of the Circular Flow Model. a) Consumption spending b) Investment spending c) Government purchases of goods and services d) Taxes e) Savings f) Imports g) Exports h) Net exports

37. Which of the following are the four components of spending in the Keynesian version of the Circular Flow Model. a) Consumption spending b) Investment spending c) Government purchases of goods and services d) Taxes e) Savings f) Imports g) Exports h) Net exports
37. Which of the following are the four components of spending in the Keynesian version of the Circular Flow Model.
a) Consumption spending
b) Investment spending
c) Government purchases of goods and services
d) Taxes
e) Savings
f) Imports
g) Exports
h) Net exports

Solution
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Answer

a) Consumption spending, b) Investment spending, c) Government purchases of goods and services, h) Net exports Explanation 1. Identify Keynesian Spending Components The four components of spending in the Keynesian Circular Flow Model are: - Consumption spending - Investment spending - Government purchases of goods and services - Net exports

Explanation

1. Identify Keynesian Spending Components<br /> The four components of spending in the Keynesian Circular Flow Model are:<br />- Consumption spending<br />- Investment spending<br />- Government purchases of goods and services<br />- Net exports
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