Which of the Following Is Consistent with the Keynesian Theory

Multiple Choice

Which of the following is consistent with the Keynesian theory?

A) Irrational waves of pessimism would cause a decrease in aggregate demand and increase unemployment.
B) Irrational waves of optimism would cause a reduction in aggregate demand and decrease unemployment.
C) Changes in business and consumer expectations generally stabilize the economy.
D) Changes in consumer confidence are irrelevant for the economy.