Keynes believed that "animal spirits," or confidence levels, had their greatest impact on:
A)investment spending.
B)government spending.
C)monetary policy officials.
D)the foreign sector.

Question

Quizplus · Accepted Answer

Keynes believed that confidence levels, or animal spirits, had the greatest impact on investment spending. This is because when businesses are confident, they are more likely to invest in new projects, expand their operations, and hire more workers, which in turn spurs economic growth. Therefore, A is the best choice.

Keynes Believed That "Animal Spirits," or Confidence Levels, Had Their