A Criticism of the Monetarist Autonomous Spending Variable Is That

question 32

Multiple Choice

A criticism of the monetarist autonomous spending variable is that

• A)some types of autonomous spending do not affect aggregate demand.
• B)some types of autonomous spending affect aggregate demand before the spending occurs. Some types of autonomous spending affect aggregate demand when they occur.
• C)some types of autonomous spending affect aggregate demand only long after they occur.
• D)Keynesians do not think that autonomous spending affects aggregate demand.

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Definitions:

Independent

Not influenced or controlled by others; acting or existing freely.

Evolutionary Theorists

Scholars who study how evolutionary principles like natural selection explain the development and behavior of organisms.

Irrational

Pertaining to actions, decisions, or beliefs that lack reason, logic, or coherence, often based on emotional responses rather than facts.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making and problem-solving but do not guarantee optimal solutions.