Which of the following is NOT a feature of the Keynesian theory?
A. Emphasis on effective demand
B. Wage-price flexibility ensuring full employment
C. Possibility of underemployment equilibrium
D. Importance of government intervention
Answer: Option B
Solution (By JKSSB Mock Tests)
Keynes rejected the classical assumption of wage-price flexibility leading to automatic full employment. He argued that underemployment equilibrium is possible.
Explanation:
Banks are required to maintain SLR in the form of cash, gold or unencumbered approved securities as a percentage of their Net Demand and Time Liabilities.
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