Problem
1. In the Keynesian view, what are the major determinants of investment?
2. What is Say's Law? Explain why classical economists thought that a market economy would always return to a full employment equilibrium. Why do Keynesians disagree?
3. What is the major determinant of aggregate consumption? How would a tax reduction affect consumption? How would an increase in planned saving influence planned consumption? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.