Keynesian Theory in Money & Banking: Lecture Three
14 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

According to Keynesian economics, what is the primary focus for managing the economy?

  • Passive government policy
  • Active government policy (correct)
  • International trade agreements
  • Market forces

    • What is the central belief of Keynesian economics?

  • Market forces are self-regulating
  • Monetary policy is sufficient for economic stability
  • Tax cuts alone can stimulate demand
  • Government intervention can stabilize the economy (correct)

    • What did Keynes advocate for based on his theory of Keynesian economics?

  • Decreased government expenditures and higher taxes
  • Privatization of public services
  • Increased government expenditures and lower taxes (correct)
  • Complete reliance on free market forces

    • In Keynesian economics, what are the primary tools recommended to manage the economy and fight unemployment?

    <p>Activist fiscal and monetary policy (A)</p> Signup and view all the answers

    According to Keynesian economics, what can achieve optimal economic performance and prevent economic slumps?

    <p>Influencing aggregate demand through economic intervention by the government (C)</p> Signup and view all the answers

    What is the focus of Keynesian economics in terms of total spending in the economy?

    <p>Effects on output, employment, and inflation (C)</p> Signup and view all the answers

    According to Keynesian economics, what intervention can achieve full employment and price stability?

    <p>Increase in government spending (D)</p> Signup and view all the answers

    What was the main criticism of Keynes against the British government at the time?

    <p>Balanced budget without government intervention (B)</p> Signup and view all the answers

    In Keynesian economics, what is the effect of excessive saving on the economy?

    <p>Dangerous for the economy (C)</p> Signup and view all the answers

    What did Keynes propose as a solution to economic misery?

    <p>Government deficit spending (C)</p> Signup and view all the answers

    According to Keynesian theory, what is one of the chief components of fiscal policy?

    <p>Multiplier effect (D)</p> Signup and view all the answers

    What did Keynes argue against, as represented in his book The General Theory of Employment, Interest and Money?

    <p>Classical economic theory during deep depression (B)</p> Signup and view all the answers

    What is another name for Keynesian economics, based on the context provided?

    <p>Depression economics (C)</p> Signup and view all the answers

    According to Keynes' proposal, what would an increase in consumer demand lead to?

    <p>Increase in overall economic activity and reduction in unemployment (D)</p> Signup and view all the answers

    More Like This

    Keynesian Economics Quiz
    10 questions

    Keynesian Economics Quiz

    NicestWormhole avatar
    NicestWormhole
    Fiscal Policy and Commercial Law Session One
    22 questions

    Fiscal Policy and Commercial Law Session One

    EasyToUseFeynman avatar
    EasyToUseFeynman
    Fiscal and Monetary Policy Overview
    28 questions

    Fiscal and Monetary Policy Overview

    EloquentRadon4105 avatar
    EloquentRadon4105
    Keynesian Economics and Fiscal Policy
    20 questions

    Keynesian Economics and Fiscal Policy

    WillingDrama9340 avatar
    WillingDrama9340
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser