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

question 123

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.
• E)they will improve the economy in both the short and long run.

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Definitions:

Joining Threshold

The minimum criteria or conditions required for an individual or entity to become part of a group, organization, or system.

Coalition

A group formed by individuals or organizations coming together to achieve a common goal, especially in political or negotiation contexts.

Members

Individuals who belong to a group, organization, or team, sharing common goals or interests.

Mobilizing Departments

The act of organizing and preparing various departmental units within an organization for a coordinated action or effort.