Multiple choice

The crucial determinant of the size of the market is

  1. monetary expansion

  2. inducement for investment

  3. productivity

  4. savings
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B Correct answer
Explanation

In Keynesian economics, market size depends on investment inducement (incentives that motivate businesses to invest). Higher investment leads to increased production capacity, employment, and purchasing power, which expands the market. While monetary expansion, productivity, and savings are important economic factors, 'inducement for investment' is the primary driver of market size.

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