Keynes thought that the key to determining the broader economic effects of investment fluctuations
A) was to examine how businesses react to flexible prices and wages.
B) was to closely regulate the real interest rate.
C) was to understand the relationship between how much people earn and their willingness to engage in personal consumption spending.
D) was to understand how changes in the money supply influences consumption decisions.
C
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In a perfectly competitive labor market, if any one firm decreases the amount of labor it employs, the most likely result will be that the
a. market wage rate will rise b. firm's revenue and cost will fall c. market wage will fall d. firm's revenue and cost will rise e. firm's revenue will fall, but its cost will remain unchanged
According to public choice theory, tariffs, quotas, and other trade restrictions are primarily the result of the
a. political clout of foreigners. b. political clout of domestic consumers. c. political power of special interest groups. d. political desire for economic efficiency.
Which of the following programs is off-budget?
A. Medicare B. Defense C. Student loans D. Interest on the debt
Education's benefit to society is an example of an externality.
Answer the following statement true (T) or false (F)