Keynes Believed That Abrupt Changes in Spending Behavior

question 14

Multiple Choice

Keynes believed that abrupt changes in spending behavior

• A)Have no effect on the economy.
• B)Help stabilize the economy.
• C)Lead to responses by market participants that may make the market outcome worse.
• D)Move the economy to full employment.

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Definitions:

Division

A mathematical operation representing the process of dividing one number by another to find a quotient, often shown with the symbol "/" or "÷."

Simplify

In mathematics, to reduce an expression or equation to its simplest form, making it easier to handle or understand.

Solution

A value or set of values that makes an equation true.

Equation

A mathematical statement that asserts the equivalence of two expressions, represented by the symbol =.