John Maynard Keynes Argued That If Many Households Decide at the Same

Multiple Choice

John Maynard Keynes argued that if many households decide at the same time to increase saving and reduce spending

A) this will increase investment spending in the short run and expand the economy in the long run.
B) the economy will benefit in the short run but the effect will not last into the long run.
C) this will have a major negative impact on the economy in both the short run and in the long run.
D) they may make themselves worse off by causing aggregate expenditure to fall,thereby pushing the economy into a recession.