John Maynard Keynes Argued That If Many Households Decide at the Same

question 296

Multiple Choice

John Maynard Keynes argued that if many households decide at the same time to increase saving and reduce spending

• A)this will increase investment spending in the short run and expand the economy in the long run.
• B)the economy will benefit in the short run but the effect will not last into the long run.
• C)this will have a major negative impact on the economy in both the short run and in the long run.
• D)they may make themselves worse off by causing aggregate expenditure to fall,thereby pushing the economy into a recession.

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Definitions:

Dopamine System

Neural pathways in the brain that utilize dopamine as a neurotransmitter, involved in reward, motivation, and many aspects of behavior and cognition.

Parkinson's Disease

A progressive neurological disorder marked by tremor, muscular rigidity, and slow, imprecise movement, chiefly affecting middle-aged and elderly people.

Midbrain

A portion of the central nervous system associated with vision, hearing, motor control, sleep/wake, arousal (alertness), and temperature regulation.

Hypothalamus

A region of the forebrain below the thalamus that coordinates both autonomic nervous system and pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems, and involved in sleep and emotional activity.