Which theory emphasizes frequent changes in investment because of "animal spirits" as the main source of economic fluctuations?
A) real business cycle theory
B) new classical cycle theory
C) Keynesian cycle theory
D) monetarist cycle theory

Question

Quizplus · Accepted Answer

Keynesian cycle theory emphasizes the role of "animal spirits" - a term coined by John Maynard Keynes to describe the instincts, proclivities, and emotions that ostensibly influence and guide human behavior in economic decision-making, leading to frequent changes in investment and thus causing economic fluctuations.

Which Theory Emphasizes Frequent Changes in Investment Because of "Animal