Unlike the Classical Economists,Keynes Asserted That

question 70

Multiple Choice

Unlike the Classical economists,Keynes asserted that:

• A) Laissez-faire would lead to macro equilibrium.
• B) The economy was inherently unstable.
• C) Markets would naturally self-adjust.
• D) Wages and prices were flexible.

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Definitions:

Zero-Coupon Bond

A bond that is sold at a discount and pays no interest, but is redeemed at its face value at maturity, generating a profit for the holder.

Yield

The income return on an investment, such as the interest or dividends received, usually expressed as an annual percentage of the investment's cost.

Zero-Coupon Bond

A bond that is sold at a discount and does not pay interest but is redeemed at its full face value at maturity.

Purchase Price

The amount paid to buy an asset or security, which can influence the investment's potential return and tax implications.