Which of the Following Statements Is False

question 116

Multiple Choice

Which of the following statements is false?

• A) Keynes believed that monopolistic elements in the economy will prevent immediate price declines.
• B) Keynes believed that during periods of high unemployment,labor unions will prevent wages from falling fast enough to restore full employment.
• C) Keynes believed that interest rate flexibility will ensure that saving is equal to investment.
• D) Keynes did not believe in Say's law.

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Definitions:

Keynesian Economics

An economic theory stating that government intervention through monetary and fiscal policies is necessary to manage economic cycles and stimulate economic growth.

Laissez-Faire

An economic philosophy advocating for minimal government intervention in business and the economy.

Progressivism

Broad-based reform movement, 1900–1917, that sought governmental action in solving problems in many areas of American life, including education, public health, the economy, the environment, labor, transportation, and politics.

Wilsonian Moralism

Refers to President Woodrow Wilson's foreign policy ideology focused on spreading democracy, supporting national self-determination, and promoting ethical practices in international relations.