Which Statement Is the Key Argument of John Maynard Keynes

question 16

Multiple Choice

Which statement is the key argument of John Maynard Keynes?

• A)Government can pull an economy out of a recession by stimulating demand and creating a cycle of increased production and jobs.
• B)Government regulations during economic depressions must be lifted because they destroy the already slim profit margin.
• C)The economy of size shows that monopolies are the most efficient way to distribute goods throughout a national marketplace.
• D)Government can rectify a falling economy by regulating the money supply.

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Definitions:

Computation

The process of performing mathematical calculations or processing data to arrive at a result or conclusion.

Time Value

The concept that money available at the present time is more valuable than the same amount in the future due to its potential earning capacity.

Money

A medium of exchange that facilitates the transfer of goods and services.

Average Accounting Return

A financial ratio indicating the average profitability of investments, calculated as the average annual net income divided by the average book value.