Multiple Choice
Keynes stressed the importance of effective demand, which is
A) when business firms are effective in convincing consumers that they have a demand for certain goods.
B) when consumers have the desire for goods and services as well as the income to purchase these goods.
C) when the demand for goods and services is effective in satisfying individuals desires.
D) when aggregate demand is less than aggregate supply.
Correct Answer:

Verified
Correct Answer:
Verified
Q9: In Keynes' analysis of the circular flow,
Q10: Income received by households will be used
Q11: In Keynes' analysis of the circular flow
Q12: Unused savings, as defined in this chapter,
Q13: The wealthy tend to have<br>A) higher average
Q15: Leakages from the circular flow include<br>A) savings,
Q16: All of the following individual investments are
Q17: Progressive economists argue that recessions and depressions
Q18: All of the following are examples of
Q19: The circular flow of money refers to<br>A)