Which of the Following Is Not Part of Keynes's Criticism

question 11

Multiple Choice

Which of the following is not part of Keynes's criticism of the classical theory of employment?

• A)A reduction in wage rates will lead only to a reduction in total spending,not to an increase in employment.
• B)Investment spending is not very strongly influenced by the rate of interest.
• C)Prices and wages are simply not flexible downward in modern capitalistic economies.
• D)Saving in modern economies depends largely upon the level of disposable income and is little influenced by the rate of interest.

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Definitions:

Ectotherms

Organisms that regulate their body temperature through external sources, such as sunlight or a heated rock surface, rather than internal metabolic processes.

Behavioral Mechanisms

The biological and psychological processes that influence the actions and reactions of organisms to their environment.

Body Temperature

The measure of the body's ability to generate and get rid of heat, vital for the proper functioning of metabolic processes.

Home HVAC System

A heating, ventilation, and air conditioning system designed to maintain indoor air quality and thermal comfort in residential buildings.