Keynes Believed That an Increase in Savings Would

question 173

Multiple Choice

Keynes believed that an increase in savings would:

• A)raise aggregate demand by reducing investment.
• B)raise aggregate demand by increasing consumption.
• C)reduce aggregate demand by reducing investment.
• D)reduce aggregate demand by reducing consumption.

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Definitions:

Muscle Movements

The action of muscles contracting and relaxing, which results in movement of body parts or the entire body.

Speech

Speech is the verbal expression of thoughts, feelings, or information, made possible through the coordinated use of the vocal tract, including the tongue, throat, and lips.

Brain Plasticity

The capacity of the nervous system to change its structure and function in response to experience or injury.

Damaged Brain Area

A region of the brain that has been impaired or injured due to trauma, disease, or other conditions.