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

question 109

Multiple Choice

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

• A)this may benefit the economy in the short run,but not in the long run.
• B)the economy will benefit in the short run and benefit by an even greater amount in 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)this may benefit the economy in the long run,but could be counterproductive in the short run.

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Definitions:

Beta Wave Activity

refers to the brain wave patterns associated with active, alert, and waking states of consciousness, characterized by a higher frequency of neural oscillations.

Alpha Wave Activity

Brainwaves detected via EEG, associated with a relaxed yet alert state of consciousness.

Inverted-U Function

A theory suggesting that there is an optimal level of arousal for performance, with both too little and too much arousal leading to poorer outcomes.

Arrousal

Arousal (correct spelling) is a physiological and psychological state of being awoken or alert, characterized by heightened physical activity and sensory alertness.