Question

Which of the following is not one of the four main categories of spending identified by John Maynard Keynes? A) consumption B) planned investment C) government purchases D) transfer payments

Answer 1

Answer:

Transfer payments

Explanation:

John Maynard Keynes in his theory of total spending argued that consumers need to spend to maintain an economy. He stated that an increase in spending will replicate the effect in an economy and the government needs to spend more to reduce unemployment.

John Maynard Keynes categories of spending include;

• Consumption spending,
• investment
• government Purchases or expenditure
• and net export

Transfer payments are not categorized in John Maynard's categories of spending.