How Did Keynes Propose to Solve the Problem of High

question 49

Multiple Choice

How did Keynes propose to solve the problem of high unemployment?

• A) increase the growth rate of the money supply
• B) allow wages to decline, so that firms will want to hire more workers
• C) put on wage and price controls, so wages won't rise and firms won't have to lay people off to cut costs
• D) have the government increase its demand for goods and services

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Definitions:

Net Working Capital Turnover

A measure of how effectively a company is using its net working capital to generate sales.

Total Fixed Assets

The cumulative value of all long-term tangible assets that a company owns and uses in its operations, and are not intended for resale within the business year.

Long-term Liabilities

Debts or obligations that are due in more than one year's time, reflecting a company's financing strategies beyond the short term.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating its short-term financial health and operational efficiency.