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      Question

      Keynes assumed that the price level was fixed because

      A inflation was not a serious problem during the Great Depression. Correct Answer Incorrect Answer
      B his primary focus was on money supply. Correct Answer Incorrect Answer
      C his primary focus was on interest rates and investment spending. Correct Answer Incorrect Answer
      D Both (a) and (b) of the above. Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Keynes assumed that the price level was fixed because inflation was not a serious problem during the Great Depression.

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