The Primary Factor That Caused Some Economists to Lose Their

question 66

Multiple Choice

The primary factor that caused some economists to lose their faith in the Keynesian approach to macroeconomic policy was

• A)the high levels of unemployment that occurred during the Great Depression.
• B)the presence of both high unemployment and high inflation during the 1970s.
• C)theoretical proof that Keynes's ideas were invalid.
• D)evidence that Keynes's ideas were useful during economic recessions, but not during economic booms.

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Definitions:

Transferred Receivables

Financial assets that have been moved from one party to another, often sold or used as collateral in financing agreements.

Stamping Machine

A mechanical or hydraulic machine utilized in manufacturing to shape or cut metal by deforming it with a die.

Debt Restructuring

The process of negotiating new terms for existing debts to provide relief to the borrower, including changes in interest rates, payment schedules, or the amount owed.

Accrued Interest

Interest that has been incurred but not yet paid.