Because Keynes Believed That the Cause of Persistent High Unemployment

question 28

Multiple Choice

Because Keynes believed that the cause of persistent high unemployment ultimately lay in adequate demand for goods,he proposed that governments use fiscal and monetary policies to

• A) manage interest rates.
• B) manage aggregate demand.
• C) manage savings rates.
• D) manage budget deficits.
• E) manage imports.

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Definitions:

Newspaper

A printed or digital publication that provides news, information, and commentary on current events on a regular or semi-regular basis.

Town Criers

Historical figures who made public announcements in the streets, often employed by the town or city authorities before the advent of mass communications.

Mississippi River

The second-longest river in North America, flowing southward for 2,320 miles from Minnesota to the Gulf of Mexico, serving as a major transportation and trade route.

Tax-free Markets

Marketplaces or zones where goods and services are sold without the addition of taxes, often to encourage trade or investment.