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Sagot :
Keynes disagreed with the classical perspective and argued that changing expectations would cause a decline in investment when consumer sales decrease.
What is the expectation?
- An expectation is emotional anticipation or conviction about a future event that might occur.
- We anticipate this potential type of fake reality coming to pass in our life.
- Expectations might come from other people, things, or anything else that is a factor external to our true selves.
What are investments?
- Investment is the commitment of a resource to a long-term increase in value.
- Investment necessitates the loss of a current resource, such as time, money, or effort.
- In the world of finance, investing is done in order to profit from the asset being put to use.
Therefore, Keynes disagreed with the classical perspective and argued that changing expectations would cause a decline in investment when consumer sales decrease.
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