Keynesian Theory Is Based on the Hypothesis That

question 288

Multiple Choice

Keynesian theory is based on the hypothesis that

• A)saving and consumption are influenced primarily by real current disposable income.
• B)saving is influenced primarily by the interest rate.
• C)planned savings equal planned investment only at full employment.
• D)full employment is automatically attained in any economy.

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Definitions:

Indirect Approach

A communication strategy where the main point or request is presented after providing background information or context, often used to soften the message or persuade.

Audience Resistance

The reluctance or opposition from an audience to accept or agree with the message being communicated.

Circular Reasoning

A logical fallacy in which the conclusion is supported by premises that assume the truth of the conclusion instead of proving it.

Faulty Analogies

Comparisons made between two things that are dissimilar in significant ways, leading to misleading or erroneous conclusions.