The Neoclassical Synthesis

question 16

Multiple Choice

The neoclassical synthesis:

• A) held that econometric models of the economy could not be used to predict the future.
• B) was the dominant school of thought among economists in the 1950s and 1960s.
• C) held that economy always operated at or very near the natural rate of unemployment.
• D) was a name coined by Keynes himself for his new theories.
• E) rejected virtually all of Keynes' insights.

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Definitions:

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, and protects them from being personally liable for the company's debts and obligations.

Thin Capitalization

In corporation law, a ground for piercing the corporate veil due to the shareholders’ contributing too little capital to the corporation in relation to its needs.

Nevada Corporation

A corporation chartered in the state of Nevada, often chosen for its favorable corporate laws and tax rules.