In explaining why the level of investment spending fell to such a low level during the Great Depression,Keynes argued that
A) consumers were not saving enough of their income,so there was little credit available to businesses.
B) the interest rate was too high.
C) the interest rate was too low.
D) businesses held bleak expectations concerning future business activity and were unwilling to borrow even at low interest rates.
Correct Answer:
Verified
Q91: If aggregate demand increases and,as a result,real
Q92: Q93: According to classical theory, Q94: Keynesian macroeconomic theory has been summarized as Q95: According to Keynes,output is demand determined.This means Q97: The major cause of the Depression of Q98: Say's law states that supply creates its Q99: The aggregate supply curve will be vertical Q100: Unless the aggregate supply curve is vertical,decreases Q146: According to Keynes,if the economy is in
A)any deficiency in total
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents