Keynes believed that increases in investment expenditures are primarily driven by high profit expectations, as businesses are more likely to invest when they anticipate higher returns.

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Keynes Believed

Question 184

Multiple Choice

Keynes believed

A) increases in investment expenditures are due to lower interest rates.
B) increases in investment expenditures are due to high profit expectations.
C) increases in investment expenditures are due to excessive funds in the loanable funds market.
D) since supply creates its own demand,increases in investment expenditures creates additional supply and therefore more demand and earnings for the businesses.

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