According to the Keynesian model, under which conditions would an open market operation by the Fed have the greatest effect on national income?
-When the economy is at full employment
-When the marginal propensity to consume is high
-When the investment demand curve is relatively steep
-When the marginal propensity to save is high
-When both the marginal propensity to consume and the marginal propensity to save is high
Thank you!
-When the economy is at full employment
-When the marginal propensity to consume is high
-When the investment demand curve is relatively steep
-When the marginal propensity to save is high
-When both the marginal propensity to consume and the marginal propensity to save is high
Thank you!