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According to the Keynesian View, If Purchasers Buy More Goods

Question 47

Multiple Choice

According to the Keynesian view, if purchasers buy more goods and services than businesses expect,


A) the inventories of firms would decline, and the firms would expand output in order to restore their inventories to desired levels.
B) the inventories of firms would increase, and the firms would reduce output until inventories were cut back to the desired level.
C) the current level of income would persist in the future.
D) firms would reduce their investment, and the economy would fall into a recession.

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