The Key Argument of John Maynard Keynes Is That

question 48

Multiple Choice

The key argument of John Maynard Keynes is that

• 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:

Foreign Competition

The competition that domestic companies face from abroad, often referring to the goods and services offered by companies located in other countries.

Infant Industry Theory

An economic rationale for trade protectionism arguing that emerging domestic industries need protection from international competition until they become mature and competitive.

Protected

Safeguarded from harm or damage through legal, physical, or other means.

Emerging Industries

Sectors or industries that are in the early stages of development and show potential for significant growth and innovation in the future.