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Which of the Following Policy Prescriptions for Overcoming a Depression

Question 109

Multiple Choice

Which of the following policy prescriptions for overcoming a depression is most closely associated with John Maynard Keynes?  


A)  He believed that a serious economic contraction is a natural phase in an otherwise healthy system, and thus no intervention is needed during a depression. 
B)  He advocated for tax increases in order to balance the federal government's budget during the Great Depression. 
C)  He advocated for a decrease in the money supply to stabilize the economy during the Great Depression. 
D)  He argued that increased government demand should offset reduced private sector demand in order to prevent depression.

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