Question
In the full Keynesian model, imports:
decrease when income increases.
remain unaffected by changes in output.
increase when income increases.
depend on the interest rate.
depend on government policy
decrease when income increases.
remain unaffected by changes in output.
increase when income increases.
depend on the interest rate.
depend on government policy
Answers
GPT-4o mini
In the full Keynesian model, imports **increase when income increases**. This is because as income rises, consumers tend to purchase more goods and services, which often includes imported goods.