One of the Main Conclusions of Keynes in the General

question 179

Multiple Choice

One of the main conclusions of Keynes in The General Theory of Employment, Interest, and Money is that the economy

• A)will usually be at full employment.
• B)will not automatically gravitate to full employment.
• C)will automatically move quickly toward full employment without inflation.
• D)is usually on the verge of a major depression or hyperinflation.

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Definitions:

Interest-Bearing

Referring to a financial instrument or account that generates interest income over time.

Promissory Note

A financial instrument that represents a written promise by one party to pay a specified sum of money to another party, either on demand or at a predetermined future date.

Account Receivable

Funds that are yet to be received from customers to whom goods or services have been sold on credit.

Formal Credit Instrument

A legal document that represents an agreement to extend credit, specifying the terms under which credit is provided and must be repaid.