Keynes Disagreed with the Classical Model Because He Felt That

Multiple Choice

Keynes disagreed with the classical model because he felt that

A) a modern economy has adequate levels of competition to ensure the flexibility of wages and prices.
B) supply creates its own demand.
C) in the long run, capitalism will be replaced by socialism.
D) one cannot be certain that changes in interest rates equate saving to investment.
E) the automatic mechanism in a capitalist society produces accelerating rates of inflation.