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:

Horyuji

An ancient Buddhist temple in Ikaruga, Nara Prefecture, Japan, known for its historic wooden structures and as a UNESCO World Heritage site.

Kamakura Period

A period in Japanese history running from 1185 to 1333, marked by the rule of the Kamakura shogunate and noted for the emergence of the samurai class and the spread of Zen Buddhism.

Esoteric Buddhism

A branch of Buddhism focusing on secret teachings and rituals meant to be understood or practiced by a select group of initiates.

Zen Buddhism

A branch of Mahayana Buddhism that emphasizes meditation, personal insight, and simplicity to achieve enlightenment.