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:

Systematic Rehearsal

A deliberate practice or repetition of information to be remembered, often to move it from short-term to long-term memory.

Visuospatial Sketchpad

The visuospatial sketchpad is a component of working memory model that processes and stores visual and spatial information. It is important for navigation, understanding spatial relations, and manipulating objects in our environment.

Phonological Loop

A component of working memory responsible for temporarily storing and manipulating verbal and auditory information.

Parallel Distributed Processing

A model in cognitive science that proposes that information processing takes place through networks of interconnected nodes, simulating neural networks.