Question

Keynes theory is associated with:

• A. Effective demand
• B. Propensity to consume
• C. Propensity to saving
• D. All the above

Hint:

Keynes' theory highlights the importance of aggregate demand in determining economic output and employment.

Answer 1

The Correct Option is D

Step 1: Understanding Keynesian theory.
John Maynard Keynes' economic theory emphasizes the role of government intervention in managing economic cycles. The theory involves effective demand, the propensity to consume, and the propensity to save.

Step 2: Conclusion.
Thus, the correct answer is option (4) All the above.