Keynes used the term "animal spirits" to represent
A) changes in people's consumption expenditures.
B) the ease of forecasting.
C) fluctuations in business confidence.
D) investment based on hard facts about the future.

Question

Quizplus · Accepted Answer

Keynes used the term "animal spirits" to describe the emotional and psychological factors that drive business owners and investors to take action, particularly in the context of uncertainty. It refers to the human emotion that drives confidence, optimism, and decision-making in economic activities, especially investments, which cannot be based solely on hard facts or rational predictions about the future.

Keynes Used the Term "Animal Spirits" to Represent