Which of the Following Is FALSE? Keynesian Economics

question 225

Multiple Choice

Which of the following is FALSE? Keynesian economics:

• A)emphasizes that factors other than the money supply can affect aggregate demand.
• B)provides the rationale for macroeconomic policy activism.
• C)emphasizes short-run economic fluctuations.
• D)emphasizes long-run fluctuations.

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Definitions:

Earnings Management

The practice of using accounting techniques to produce financial reports that present an overly positive view of a company's business activities and financial position.

Dividend Discount Models

Methods used to value a company's stock by discounting predicted dividends to present value.

P/E Ratios

Price-to-Earnings Ratio, a valuation metric comparing the current share price of a company to its per-share earnings.

Mispriced Securities

Securities whose market price is significantly different from their intrinsic value due to inefficiencies in the market.