Which of the following statements is false?
A) Keynes believed that monopolistic elements in the economy will prevent immediate price declines.
B) Keynes believed that during periods of high unemployment,labor unions will prevent wages from falling fast enough to restore full employment.
C) Keynes believed that interest rate flexibility will ensure that saving is equal to investment.
D) Keynes did not believe in Say's law.

Question

Quizplus · Accepted Answer

Keynes actually believed that interest rate flexibility may not be enough to ensure saving is equal to investment, particularly during times of market instability or heightened uncertainty. This was because investors, after a while, may simply hold onto or hoard cash instead of investing it, leading to deficient aggregate demand.

Which of the Following Statements Is False