According to Keynesian Analysis, If Households Intend to Save More

question 203

Multiple Choice

According to Keynesian analysis, if households intend to save more, they will

• A) ultimately spend more.
• B) cause jobs to increase because investment will increase.
• C) ultimately cause job losses.
• D) cause the GDP to increase because inflation will decrease.

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Definitions:

Neural Basis

Neural basis pertains to the underlying neurological structures and functions that support cognitive processes, behaviors, and emotions.

Rehearsal

A cognitive process in which information is repeated over and over as a possible way of learning and remembering it.

Stress Hormones

Chemicals released in the body in response to stress, such as cortisol and epinephrine, that prepare the body for a fight or flight response.

Long-Term Potentiation

A long-lasting enhancement in signal transmission between two neurons that results from stimulating them synchronously, often considered one of the major cellular mechanisms that underlies learning and memory.