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1. At income q, savings = o 20 o 10 o 5 o 0 2. APC>1 at income = o 90 o 80 o 60

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1. At income q, savings = o 20 o 10 o 5 o 0 2. APC>1 at income = o 90 o 80 o 60 o 45 3. The 45' line can also be called: 0 maximum debt-free spending 0 the savings schedule 0 the expenditure line . the deb /(\\ . Keynes thought that during recessions prices could: o be adjusted by government 0 stabilized by foreign trade 0 stabilized by savings 0 play no role as they are fixed in the short-run . Keynes thought that during recessions falling interest rates could: o revive investment 0 entice consumers to make big purchases 0 be pushed down further by government 0 have no effect because no one is willing to borrow during a recession . At short-run equilibrium aggregate demand _ aggregate supply. o Is half of o Equals o Is greater than o Is less than . At income q, savings = o 20 o 10 o 5 o O . APC>1 at income = o 90 o 80 o 60 o 45 . The 45' line can also be called: 0 maximum debt-free spending 0 the savings schedule 0 the expenditure line 0 the debt schedule . Keynes thought that during recessions prices could: o be adjusted by government 0 stabilized by foreign trade 0 stabilized by savings 0 play no role as they are fixed in the short-run . Keynes thought that during recessions falling interest rates could: o revive investment 0 entice consumers to make big purchases 0 be pushed down further by government 0 have no effect because no one is willing to borrow during a recession . At short-run equilibrium aggregate demand _ aggregate supply. o Is half of o Equals . IQ "rap

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