The concept of "animal spirits" in Keynesian theory refers to:

CA Foundation · Business Economics · MTP · June 2024
The concept of "animal spirits" in Keynesian theory refers to:
(A) A. The unpredictable behaviour of financial markets
(B) B. psychological factors influencing economic decisions.
(C) C. Government regulations affecting business confidence.
(D) D. The impact of interest rates on investment

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. psychological factors influencing economic decisions.

Topics: Determination of National Income

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