The General Theory of John Maynard Keynes Exerted a Major

question 164

Multiple Choice

The General Theory of John Maynard Keynes exerted a major impact on macroeconomics during the 20^th century primarily because

• A) it provided the only logically consistent view of what caused the Great Depression.
• B) it provided a reasonable explanation of what went wrong during the Great Depression and what could be done to prevent it from happening again.
• C) it explained how gross domestic product could be measured and why this was important.
• D) it derived the conditions necessary for maximum efficiency of resource use and explained how these conditions could be achieved through central planning.

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Definitions:

Default Risk

The risk that a borrower will not make the required payments on their debt obligations.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment in the future.

Financial Accounting

Financial accounting is the process of recording, summarizing, and reporting a company's transactions to provide an accurate picture of its financial position and performance.

Contract Terms

The specific provisions and agreements outlined in a contract that dictate the rights and obligations of each party involved.