Which of the Following Is Consistent with Keynes's View of Say's

question 32

Multiple Choice

Which of the following is consistent with Keynes's view of Say's law?

• A) Saving increases by $3 billion,consumption falls by $3 billion,and investment rises by $3 billion.
• B) Consumption rises by $3 billion and saving rises by more than $3 billion.
• C) Saving rises by $3 billion,consumption falls by $3 billion,and investment rises by something less than $3 billion.
• D) Saving rises by $3 billion,consumption falls by $3 billion,and investment rises by $6 billion.
• E) none of the above

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Definitions:

MC = MR

An economic principle that firms reach the optimal level of production when marginal cost equals marginal revenue.

Downward-Sloping

Describes a curve or line on a graph that shows a decrease in a variable (e.g., price) leading to an increase in another variable (e.g., quantity demanded), typically observed in demand curves.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping, indicating an inverse relationship between price and quantity demanded.

Output Axis

In graphing, particularly in economics, this refers to the axis on which the quantity produced or supplied is measured.