What Do Keynesians Mean When They Say That "You Can't

question 156

Multiple Choice

What do Keynesians mean when they say that "you can't push on a string"?

• A) An increase in the supply of goods does not really create its own demand.
• B) If the government reduces taxes in an attempt to increase household consumption,it will not always work.
• C) An increase in the money supply will not always stimulate the economy.
• D) If the government wants to get something done,the best way is not to force the issue,but to offer incentives.
• E) If the government puts too much expansionary pressure on the economy,it will probably "overheat."

---

Definitions:

Small Interest Group

A group of individuals or organizations that, despite its small size, seeks to influence public policy or corporate decisions based on specific common interests or concerns.

Inefficient Government Program

A public initiative that fails to achieve desired outcomes effectively, often due to misallocation of resources or administrative issues.

Logrolling

The practice of exchanging favors, especially in politics, by reciprocal voting for each other's proposed legislation.

Vote Trading

A strategy where individuals or parties exchange support for each other's preferred choices or policies, often seen in political contexts.