What Do Keynesians Mean When They Say That "You Can't

question 156

Multiple Choice

What do Keynesians mean when they say that "you can't push on a string"?

• A) An increase in the supply of goods does not really create its own demand.
• B) If the government reduces taxes in an attempt to increase household consumption,it will not always work.
• C) An increase in the money supply will not always stimulate the economy.
• D) If the government wants to get something done,the best way is not to force the issue,but to offer incentives.
• E) If the government puts too much expansionary pressure on the economy,it will probably "overheat."