Keynes used the term "animal spirits" to describe the ________.
A) altruistic nature of consumers and firms
B) changes in human capital that cause economic fluctuations
C) psychological factors that affect the mood of consumers and businesses
D) role of technology in causing economic fluctuations

Question

Quizplus · Accepted Answer

Keynes believed that psychological factors, such as mood and confidence, had a significant impact on economic behavior, which he referred to as "animal spirits." These factors drive consumption and investment decisions and can lead to fluctuations in economic activity.

Keynes Used the Term "Animal Spirits" to Describe the ________