According to the Keynesian View, an Unanticipated Reduction in Spending

Multiple Choice

According to the Keynesian view, an unanticipated reduction in spending will

A) increase the demand for goods and services.
B) raise business inventories and lead to a decline in output.
C) lead to lower interest rates, which will stimulate aggregate demand and keep the economy at full employment.
D) lead to a lower price level, which will quickly guide the economy to full-employment equilibrium.