Which of the following is NOT part of Keynes's criticism of the classical theory of employment?
A. A reduction in wage rates will lead only to a reduction in total spending, not to an increase in employment.
B. Investment spending is not very strongly influenced by the rate of interest.
C. Prices and wages are simply not flexible downward in modern capitalistic economies.
D. Saving in modern economies depends largely upon the level of disposable income and is little influenced by the rate of interest.
B. Investment spending is not very strongly influenced by the rate of interest.
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Investment in a broad portfolio of stocks is most attractive for
a. short-term investors. b. long-term investors. c. investors seeking a steady rate of return. d. investors who will need the funds for other purposes in about 10 years.
In what way are entrepreneurs residual claimants?
What will be an ideal response?