Because Keynes's Theory Recognized the Problem of Interest Rates Being

question 196

Multiple Choice

Because Keynes's theory recognized the problem of interest rates being at the zero bound (the liquidity trap) , it:

• A) perceived the economy as being mostly self-adjusting.
• B) favored the use of monetary policy over fiscal policy.
• C) considered technological progress the answer to any economic slump.
• D) favored the use of fiscal policy over monetary policy.

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