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.

---

Definitions:

Confidence Interval

Newly defined: A measure indicating the reliability of an estimate, often used to infer about the population parameter from sample data.

Sample

A subset of a population used in statistical analysis to estimate the characteristics of the whole population.

Mean

The average value of a set of numbers, calculated by dividing the sum of all the numbers by the count of the numbers.

Standard Error

The usual measure of spread for the distribution that arises from sampling, typically concerning the mean.