According to Keynes,which of the Following Should the Government Do

question 48

Multiple Choice

According to Keynes,which of the following should the government do when the economy overheats?

• A)Employ more people.
• B)Increase spending.
• C)Raise taxes.
• D)Practice laissez faire policies.

---

Definitions:

Diversification Benefits

The advantages gained by investing in a variety of assets to reduce risk in a portfolio.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Minimum-Variance Portfolio

An investment portfolio designed to achieve the lowest possible risk level for its expected rate of return.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, commonly used to quantify the risk of a financial instrument.