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Give brief notes on the Keynes’s criticisms the Say's law.

Give brief notes on the Keynes’s criticisms the Say's law.

Answers

sharon
-According to him, household would hold idle money balances for speculative
motive.
-Keynes demonstrated that households could view money both as an asset alternative
to other interest- bearing assets and as a medium of exchange and that households
could create unemployment by holding idle money hence, invalidating Say’s Law.
-Keynes also argued that at low interest rates there could be a liquidity trap monetary
policy as proposed by the classical economist would not restore the economy to full
employment.
sharon kalunda answered the question on April 11, 2019 at 11:51

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