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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Definitions:

Measure of Effect Size

A quantitative measure that describes the magnitude of the relationship between two or more variables.

Degrees of Freedom

The tally of different values or quantities that can be given to a statistical distribution.

P Value

The probability of obtaining test results at least as extreme as the ones observed during the test, assuming that the null hypothesis is true.

Degrees of Freedom

The number of independent pieces of information used to estimate a parameter or calculate a statistic, often linked to the sample size.