Keynesians assume that there is a powerful direct link between aggregate demand and
A) velocity.
B) real money balances.
C) exogenous investment spending.
D) interest rates.

Question

Quizplus · Accepted Answer

Keynesians emphasize the role of exogenous investment spending in influencing aggregate demand, viewing it as a primary driver of economic activity. They argue that investment spending decisions are influenced by factors like expectations and interest rates, rather than being directly linked to the velocity of money or real money balances.

Keynesians Assume That There Is a Powerful Direct Link Between