Which Is True of John Maynard Keynes

question 46

Multiple Choice

Which is true of John Maynard Keynes?

• A)He believed that serious economic contractions were natural phases in an otherwise healthy system.
• B)He provided a model that closely resembled that of Adam Smith.
• C)He advocated a decrease in the money supply to stabilize the economy.
• D)He argued that increased government demand should offset reduced private sector demand to prevent depression.
• E)He advocated tax increases to balance the federal government's budget during the Great Depression.

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Definitions:

Unemployment Taxes

Taxes imposed on employers, based on the amount of wages paid to employees, used to fund unemployment compensation programs.

Gross Wages

The total amount of salary or wages earned by an employee before any deductions or taxes are applied.

Social Security

A governmental program providing financial assistance to people with inadequate or no income, especially the elderly, disabled, and families with dependent children.

Unemployment Taxes

This term refers to taxes imposed on employers based on the wages paid to employees, used to fund unemployment insurance programs.