According to Keynes

question 11

Multiple Choice

According to Keynes:

• A) monetary policy acts directly causing changes in investment and aggregate demand.
• B) monetary policy acts too slowly to cause any changes in aggregate demand.
• C) monetary policy acts indirectly causing changes in interest rates but not in investment and aggregate demand.
• D) monetary policy acts indirectly causing changes in interest rates first before affecting investment and aggregate demand.

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Definitions:

Psychological Factors

Elements of a person's psychological state that can affect their physical health, behavior, and overall well-being.

Psychological Dimensions

Aspects or factors that are used to describe and differentiate between individuals' psychological states and traits.

Sound Wave

A longitudinal wave consisting of compressions and rarefactions, which travels through a medium such as air or water and can be heard when they reach a person's or animal's ear.

Visual Cortex

The part of the cerebral cortex that processes visual information, located in the back of the brain.