John Maynard Keynes Argued That If Many Households Decide to Increase

question 144

Multiple Choice

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

• A)this may benefit the economy in the short run,but not in the long run.
• B)the economy will benefit in the short run and benefit by an even greater amount in 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)this may benefit the economy in the long run,but could be counterproductive in the short run.

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Definitions:

Seller's Lien

A legal right or interest that a seller holds in the sold goods until the full purchase price is paid by the buyer, often used as a form of security.

Sale of Goods Act

A law regulating the sale of goods, providing rights, duties, and obligations of both buyers and sellers, ensuring fairness in transactions.

Purchaser

An individual or entity that acquires goods or services in exchange for money.

Event of Default

A specified occurrence which breaches the terms of a contract or agreement, triggering specific consequences.