Which of the Following Would Be a Keynesian Solution for Inflation

question 14

Multiple Choice

Which of the following would be a Keynesian solution for inflation?

• A) Increase transfer payments to those people hurt by inflation
• B) Decrease government expenditures and let the multiplier work
• C) Restrict foreign imports into the country
• D) Do nothing because the economy is inherently stable

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Definitions:

Coordinated

Actions or efforts that are managed in such a way as to ensure efficiency and harmony in achieving a goal.

Effective Control

The process or system put in place to guide activities towards achieving organizational goals efficiently and effectively.

Internal

Occurring or existing within an organization or entity.

External Control

The belief or perception that one's successes or failures result from external forces or the influence of others, rather than one's own efforts.