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What are the three motives for holding money according to Keynes's theory of money demand?
1.for transactionary motive 2.for precautionary motive 3.for speculative motive.
What is the total demand for money?
According to John Maynard Keynes, the total demand for money is composed of transactional demand, precautionary demand and speculative demand for money.
What role did keynes envision for government in the economy?
Keynes envisioned the government spending more money to boost demand.
What are the Keynes' critiques on classical economics?
One of the main critiques is on say's law, which is that supply creates its own demand. In a nutshell Keynes was able to explain the great depression by saying that demand creates supply. This is extremely simplified.
What economic system did Keynes believe in?
Keynes' main focus was toward Aggregate Demand. His belief was that an increase or decrease in spending would solve any problem.
What are the three motives for holding money according to Keynes's theory of money demand?
1.for transactionary motive 2.for precautionary motive 3.for speculative motive.
What according to keynes will increase with reduced consumption?
Demand
What is the total demand for money?
According to John Maynard Keynes, the total demand for money is composed of transactional demand, precautionary demand and speculative demand for money.
What did Keynes sat causes unemployment?
Aggregate Demand
What role did keynes envision for government in the economy?
Keynes envisioned the government spending more money to boost demand.
John Maynard keynes argued that unemployment came from?
yes he did a right thing. according to me all must raise their voice against unemployment
What are the Keynes' critiques on classical economics?
One of the main critiques is on say's law, which is that supply creates its own demand. In a nutshell Keynes was able to explain the great depression by saying that demand creates supply. This is extremely simplified.
What economic system did Keynes believe in?
Keynes' main focus was toward Aggregate Demand. His belief was that an increase or decrease in spending would solve any problem.
The economist John Maynard Keynes argued that?
That unemployment came not from overproduction, but from a decline in demand.
Formula for Annual inventory holding cost?
Holding cost per unit * Average Demand Average Demand= 1/2 * Annual Demand
What is the role of the government according to John Maynard Keynes?
According to John Maynard Keynes, the government's role is to actively manage the economy, particularly during periods of economic downturns. He advocated for fiscal policies, such as increased government spending and tax cuts, to stimulate demand and boost employment. Keynes believed that in times of recession, private sector spending may not be sufficient to drive economic recovery, thus necessitating government intervention to stabilize and promote growth. Ultimately, he emphasized the importance of a proactive government in mitigating the effects of economic fluctuations.
What explanation did J.M Keynes provide about the cause of the Great Depression?
J.M. Keynes attributed the Great Depression primarily to a collapse in aggregate demand, which he believed was exacerbated by a lack of consumer and business confidence. He argued that this decline in demand led to reduced production, rising unemployment, and falling incomes, creating a vicious cycle. Keynes also emphasized the role of inadequate monetary policy and the failure of the banking system to provide necessary liquidity. His solution advocated for government intervention to stimulate demand through fiscal policies, such as increased public spending.
