(Answered) List the three basic assumptions of the simple Keynesian model.List the three basic assumptions of…

➤ How does the autonomous investment assumption affect the Keynesian multiplier?
Autonomous investment shifts aggregate demand and triggers a multiplied change in output through induced consumption. In the simple closed model without taxes or imports, the multiplier equals 1/(1−MPC). A unit increase in autonomous investment raises equilibrium output by that investment multiplied by the multiplier.