Which of the Following Statements About Keynes' Contribution to Macroeconomics

question 40

Multiple Choice

Which of the following statements about Keynes' contribution to macroeconomics is correct?

• A) Keynes argued that animal spirits affect consumption more than investment.
• B) Although he published his most important ideas about the economy long before the 1930s, few economists paid attention to Keynes until the Great Depression proved him correct.
• C) Keynes argued that depressions and recessions were almost always caused by changes in the money supply.
• D) Keynes argued that effective demand determines output.
• E) Keynes argued that balancing the budget could be an effective way to cure a recession or depression.

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