Which of the Following Is Not an Aspect of Keynesian

question 182

Multiple Choice

Which of the following is not an aspect of Keynesian economics?

• A) Wages and prices tend to be inflexible downward.
• B) Supply does not necessarily generate its own demand.
• C) The interest rate is important in determining the level of investment,but not as important as other variables.
• D) Unemployment above natural unemployment is always a brief and temporary phenomenon.

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Definitions:

Financial Leverage

The use of borrowed funds to increase the potential return of an investment.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the company's leverage level.

Total Assets

The combined value of a company's immediate and long-term assets.

Total Liabilities

Total liabilities represent the aggregate of all debts and financial obligations owed by an entity at a given point in time.