Question
In the Keynesian model, investment spending is an autonomous expenditure.
True
False
True
False
Answers
GPT-5 mini
True.
In the simple Keynesian (income-expenditure) model investment is treated as an autonomous (exogenous) component of aggregate demand — it does not depend on current income (though in extended models it may depend on interest rates or past output).
In the simple Keynesian (income-expenditure) model investment is treated as an autonomous (exogenous) component of aggregate demand — it does not depend on current income (though in extended models it may depend on interest rates or past output).