John Maynard Keynes did NOT accept the classical assumption that

A) the velocity of money is constant in the short run.
B) full employment is the natural state of the economy.
C) money balances are held only for transaction purposes.
D) interest rates do not affect the quantity of money demandeD.
E) Keynes did not accept any of the above assumptions.

Velocity of Money

The rate at which money is exchanged from one transaction to another and how much a unit of currency is used in a given period of time.

Classical Assumption

In economics, refers to the traditional ideas that free markets function under equilibrium with full employment and price flexibility.

Money Balances

The total amount of money held by an individual or entity at any given time.