Keynes Argued That

question 136

Multiple Choice

Keynes argued that

• A)irrational waves of pessimism would cause a decrease in aggregate demand and increase unemployment.
• B)irrational waves of optimism would cause a reduction in aggregate demand and decrease unemployment.
• C)changes in business and consumer expectations generally stabilize the economy.
• D)All of the above are correct.

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Definitions:

Comparing

The act of evaluating two or more items to identify their similarities and differences.

Crossover Point

The point at which two or more different financial scenarios produce the same result or value.

IRR

Stands for Internal Rate of Return, a metric used in financial analysis to estimate the profitability of potential investments.

Equal

In the context of finance, it typically means having the same value or balance, as in equal shares of stock meaning each share has the same value.