Which of the following is not part of Keynes's criticism of the classical theory of employment?
A) A reduction in wage rates will lead only to a reduction in total spending,not to an increase in employment.
B) Investment spending is not very strongly influenced by the rate of interest.
C) Prices and wages are simply not flexible downward in modern capitalistic economies.
D) Saving in modern economies depends largely upon the level of disposable income and is little influenced by the rate of interest.
Correct Answer:
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