Question

5. According to Keynes, the level of consumpt
is determined by:
(al effective demand. (b) level of increase
(c) rate of interest. (d) level of savings​

Answer 1

Explanation:

In Keynes's macroeconomic theory, effective demand is the point of equilibrium where aggregate demand = aggregate supply. ... The importance of Keynes' view is that effective demand may be insufficient to achieve full employment due to unemployment and workers without income to produce unsold goods

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Answer 2

In Keynes's macroeconomic theory, effective demand is the point of equilibrium where aggregate demand = aggregate supply... The importance of Keynes' view is that effective demand may be insufficient to achieve full employment due to unemployment and workers without income to produce unsold goods