The difference between the interest rate on loans to households and firms and the rate on completely safe assets is known as ________

Using the scenario above explain how this could have happened?

What will be an ideal response?

The simple Keynesian model assumes that

A) gross private domestic investment exceeds net investment by the capital consumption allowance. B) prices, especially the price of wages, are "sticky downward." C) there will never be any excess capacity in the short run. D) aggregate demand will always equal aggregate supply.