Which one of the following statements is false? Keynes thought that the interest rate was the most a. important factor in explaining the level of investment. Keynes argued that in the case of severe slowdown b. activity, a low interest rate would not be enough to motivate business firms to invest. Keynes argued that the most important factor in explaining aggregate investment spending is the general optimism or pessimism that investors feel about the future. С. Keynes saw investment as future directed, rather than related to any d. current observable economic variables.

Which one of the following statements is false? Keynes thought that the interest rate was the most a. important factor in explaining the level of investment. Keynes argued that in the case of severe slowdown b. activity, a low interest rate would not be enough to motivate business firms to invest. Keynes argued that the most important factor in explaining aggregate investment spending is the general optimism or pessimism that investors feel about the future. С. Keynes saw investment as future directed, rather than related to any d. current observable economic variables.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 2TY

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