Keynes used the term "animal spirits" to refer to
A)policy makers harming the economy in the pursuit of self interest.
B)arbitrary changes in attitudes of household and firms.
C)mean-spirited economists who believed in the classical dichotomy.
D)firms' relentless efforts to maximize profits.

Question

Quizplus · Accepted Answer

Keynes used the term "animal spirits" to refer to arbitrary changes in attitudes of households and firms. He believed that economic decisions were not always rational and were often influenced by emotions, expectations, and other non-economic factors. These unpredictable changes in behavior could have a significant impact on the economy and were a key factor in his theory of business cycles.

Keynes Used the Term "Animal Spirits" to Refer to