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Q. |
Say's Law of Market holds that - |
A. | supply is not equal to demand |
B. | supply creates its own demand |
C. | demand creates its own supply |
D. | supply is greater than demand |
Answer» B. supply creates its own demand | |
Explanation: Say's law, or the law of market, is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767-1832), who stated that "supply creates its own demand". "Supply creates its own demand" is the formulation of Say's law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics. |
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