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John Maynard Keynes Did NOT Accept the Classical Assumption That

Question 69

Multiple Choice

John Maynard Keynes did NOT accept the classical assumption that


A) the velocity of money is constant in the short run.
B) full employment is the natural state of the economy.
C) money balances are held only for transaction purposes.
D) interest rates do not affect the quantity of money demandeD.
E) Keynes did not accept any of the above assumptions.

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