Keynes Thought That the Key to Determining the Broader Economic

question 253

Multiple Choice

Keynes thought that the key to determining the broader economic effects of investment fluctuations

• A) was to examine how businesses react to flexible prices and wages.
• B) was to closely regulate the real interest rate.
• C) was to understand the relationship between how much people earn and their willingness to engage in personal consumption spending.
• D) was to understand how changes in the money supply influences consumption decisions.

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