Which of the Following Policy Prescriptions for Overcoming a Depression

question 109

Multiple Choice

Which of the following policy prescriptions for overcoming a depression is most closely associated with John Maynard Keynes?  

• A) He believed that a serious economic contraction is a natural phase in an otherwise healthy system, and thus no intervention is needed during a depression. 
• B) He advocated for tax increases in order to balance the federal government's budget during the Great Depression. 
• C) He advocated for a decrease in the money supply to stabilize the economy during the Great Depression. 
• D) He argued that increased government demand should offset reduced private sector demand in order to prevent depression.

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Definitions:

Staples

Metal fasteners used to bind together papers or other materials, or a basic or necessary item of a particular field.

Biopsy Specimen

A small amount of tissue removed from the body for examination under a microscope to diagnose an illness.

Cryosurgery

The use of extreme cold to destroy unwanted tissue, such as skin lesions.

Grounding Pad

A device used during medical procedures to protect the patient from electric shock by providing a path for the electrical current to the ground.