Keynes Argued That Monetary Policy Would Be Impotent During the Great

question 111

Multiple Choice

Keynes argued that monetary policy would be impotent during the Great Depression because a

• A)fall in interest rates would stimulate investment.
• B)fall in interest rates would not stimulate investment.
• C)rise in interest rates should not stimulate investment.
• D)rise in interest rates would stimulate investment.

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology, etc.), assuming efficient use of resources.

Technological Advance

The introduction and application of new technologies and methods that improve productivity and efficiency.

Unemployment

A situation where individuals who are able and willing to work are unable to find jobs.

Office Of Management

A governmental organization responsible for producing the President's budget, among other responsibilities related to federal budget and management.