Which of the Following Supports the Keynesian Argument That Interest

question 69

Multiple Choice

Which of the following supports the Keynesian argument that interest rates have no effect on consumption?

• A)Consumers find it difficult to adjust their spending habits.
• B)Higher interest rates will decrease the demand for consumer loans but increase consumer saving.
• C)Interest rates are inflexible because of monopoly power in the economy.
• D)Autonomous consumption is usually zero in most modern economies.

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Definitions:

Consumer Transaction

Any transaction between a seller and a buyer for goods or services intended for personal, family, or household use.

Real Property

Pertains to land and anything permanently attached to it, including buildings and structures.

Right to Revoke Acceptance

A legal prerogative under certain conditions allowing a buyer to cancel a contract after having previously accepted goods or services.

Additional Advertising Fees

Fees charged in addition to a base rate or cost, specifically for promotional or marketing activities.