John Maynard Keynes Did NOT Accept the Classical Assumption That

question 307

Multiple Choice

John Maynard Keynes did NOT accept the classical assumption that

• A)the velocity of money is constant in the short run.
• B)full employment is the natural state of the economy.
• C)money balances are held only for transaction purposes.
• D)interest rates do not affect the quantity of money demandeD.
• E)Keynes did not accept any of the above assumptions.

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Definitions:

Passively Accepts

Refers to the act of receiving or submitting to something without active response or resistance.

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