John Maynard Keynes Argued That If Many Households Decide at the Same

question 296

Multiple Choice

John Maynard Keynes argued that if many households decide at the same time to increase saving and reduce spending

• A)this will increase investment spending in the short run and expand the economy in the long run.
• B)the economy will benefit in the short run but the effect will not last into the long run.
• C)this will have a major negative impact on the economy in both the short run and in the long run.
• D)they may make themselves worse off by causing aggregate expenditure to fall,thereby pushing the economy into a recession.

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Definitions:

Defiant

Showing resistance or disobedience against authority or challenging the norms; often used to describe rebellious behavior in children or adolescents.

Stereotypes

Oversimplified ideas or generalized beliefs about a group of people that disregard individual differences.

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a persistent pattern of disruptive and violent behaviors.

Economically Disadvantaged

Individuals or groups who have less financial stability and access to resources than the broader population, often leading to challenges in meeting basic needs.