Keynes believed that an important source of instability in the economy was instability
A)of private investment demand.
B)in the marginal propensity to consume (b).
C)of expectations.
D)in tax collections.
E)Both a and c

Question

Quizplus · Accepted Answer

Keynes believed that fluctuations in private investment demand and expectations of future economic conditions were major sources of instability in the economy. Changes in these factors could lead to changes in aggregate demand, which in turn could lead to fluctuations in output, employment, and prices.

Keynes Believed That an Important Source of Instability in the Economy