In the Keynesian view, the main source of economic fluctuations is
A) interest rates.
B) investment.
C) consumption.
D) inflation.

Question

Quizplus · Accepted Answer

In the Keynesian view, investment is the main source of economic fluctuations. This is because fluctuations in investment can have a multiplier effect on other sectors of the economy, leading to changes in output, employment, and income levels. Consumption and interest rates also play a role, but investment is considered the key driver of economic fluctuations. Inflation is not typically seen as a source of fluctuations, but rather a result of other factors affecting the economy.

In the Keynesian View, the Main Source of Economic Fluctuations