Keynes Thought That the Key to Determining the Broader Economic

question 253

Multiple Choice

Keynes thought that the key to determining the broader economic effects of investment fluctuations

• A) was to examine how businesses react to flexible prices and wages.
• B) was to closely regulate the real interest rate.
• C) was to understand the relationship between how much people earn and their willingness to engage in personal consumption spending.
• D) was to understand how changes in the money supply influences consumption decisions.

---

Definitions:

Backlash

The play or loose movement in mechanical components, particularly in gears, resulting from gaps between parts.

Gear Teeth

The individual protrusions on the circumference of a gear that engage with those on another gear to transmit torque and motion.

Runout

A defect that causes side-to-side or lateral movement in a spinning object. In wheels it is commonly caused by imperfections in the wheel’s shape; in disc brakes it can be caused by a distorted rotor, hub flange distortion, or worn wheel bearings.

Electrons

Subatomic particles whose activity creates electric currents.