The Keynesians argue that even if the interest rate does __________ in response to a decrease in investment, there is __________ guarantee that spending will increase very much.
A) increase; no
B) increase; a
C) decrease; no
D) decrease; a

Question

Quizplus · Accepted Answer

According to Keynesians, even if the interest rate decreases, there is no guarantee that spending will increase very much. Therefore, the correct choice is C, which states that the interest rate decreases but there is no guarantee of a significant increase in spending.

The Keynesians Argue That Even If the Interest Rate Does