Keynes Believed That the Way to Prevent Recessions and Depressions

question 168

Multiple Choice

Keynes believed that the way to prevent recessions and depressions was to

• A) reduce spending when there is a recessionary gap.
• B) only change tax rates as a means of regulating the economy.
• C) maximize the crowding out effect.
• D) increase aggregate demand through expansionary fiscal policy.

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Definitions:

Binocular Depth Cue

The visual information taken in by two eyes that enables the perception of depth and distance.

Difference

A point or way in which people or things are not the same, often used in the context of comparing or contrasting entities.

Substance P

A neuropeptide that plays an important role in the transmission of pain signals in the nervous system.

Sense Of Balance

The ability to maintain bodily equilibrium or stability through the integration of sensory information from the vestibular, visual, and proprioceptive systems.