Keynes Believed in All of the Following EXCEPT

question 217

Multiple Choice

Keynes believed in all of the following EXCEPT,

• A)the expected rate of profit was more important than the interest rate.
• B)recessions are temporary.
• C)expansionary government spending and tax cuts are cures for recessions and depressions.
• D)in the short run,aggregate demand should be manipulated to stabilize the economy.

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Definitions:

Imported Goods

Products brought into one country from another for the purpose of sale or trade.

Trade Imbalance

Trade imbalance occurs when there is a significant difference between a country's imports and exports, affecting its economic health.

Financial Crises

are situations where the value of financial institutions or assets drops significantly, leading to a collapse in the economy and causing widespread economic disruption.

Domestic Markets

Markets within a country's borders, where goods and services are produced, bought, and sold domestically.