The simplified keynesian model

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Reference no: EM131393693

1. A commercial bank's Deposits at The FED are:

A. liabilities to both the commercial bank and the Federal Reserve Bank holding them. B. liabilities to the commercial bank and assets to the Federal Reserve Bank holding them. C. assets to both the commercial bank and the Federal Reserve Bank holding them. D. assets to the commercial bank and liabilities to the Federal Reserve Bank holding them.

2. The simplified Keynesian model

holds the price level constant.

holds real GDP constant.

assumes investment and saving are always equal.

assumes unemployment is unrelated to real GDP.

Reference no: EM131393693

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