Keynes thought that the key to determining the broader economic effects of investment fluctuations
A. was to closely regulate the real interest rate.
B. was to understand how changes in the money supply influences consumption decisions.
C. was to understand the relationship between how much people earn and their willingness to engage in personal consumption spending.
D. was to examine how businesses react to flexible prices and wages.
Answer: C
Economics
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Indicate whether the statement is true or false
Economics
The M2 monetary aggregate contains everything that is in M1 plus other assets that are highly ________ (can be turned into cash quickly at very little cost)
A) liquid B) stable C) consistent D) efficient
Economics