John Maynard Keynes and Friedrich Hayek

question 12

Multiple Choice

John Maynard Keynes and Friedrich Hayek

• A) had similar views with regard to the cause of the Great Depression and what might be done to prevent it from happening again.
• B) both believed that perverse monetary policy was the primary cause of the ups and downs of the business cycle.
• C) both believed that budget deficits and surpluses could be used to smooth the ups and downs of the business cycle.
• D) had polar opposite views with regard to the underlying causes of economic booms and bust, but nonetheless their scholarly work commanded widespread respect among economists.

---

Definitions:

Investor Indifferent

A state in which an investor has no preference between two or more investments because they are perceived as equivalent in value.

Rate Of Return

The increase or decrease in the value of an investment during a given time frame, represented as a percentage of the investment's original price.

Investor Indifferent

A situation in finance where an investor is neutral between two or more investment options as they yield the same expected return or utility.

Department Store

A large retail establishment that offers a wide range of products across multiple categories, often in different departments.