We now typically refer to the Keynesian term "animal spirits" as:

Question

Quizplus · Accepted Answer

"Animal spirits" refer to the driving force behind business confidence and decision-making. It is not necessarily based on rational expectations or adaptive expectations, but rather on more emotional and psychological factors. While "irrational exuberance" is a related concept, it refers specifically to when market participants become overly optimistic and can lead to a market bubble. Therefore, the best choice is B, business confidence.

We Now Typically Refer to the Keynesian Term "Animal Spirits