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Quiz13.HeilbronerRoosevelt - that the problem in a...

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QUIZ #13 Heilbroner/Roosevelt SS-102 Prof. Lee 1) John Maynard Keyes was wealthy because a) he came from a distinguished family of considerable means b) he worked for a prestigious and high-paying university c) he speculated in currencies while still in bed d) he won his wealth gambling in Monte Carlo casinos 2) Keynes’ “seesaw theory of savings and investment” postulated all the following EXCEPT a) savers and investors both make prudent financial decisions b) consumers do not save enough to support a market economy c) companies invest in capital goods only in an expanding economy d) when investment falls, a drop in interest rates follows 3) Keynes concluded in his General Theory
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Unformatted text preview: that the problem in a depression is a) consumers overspend on non-essentials b) businesses make unwise investment decisions c) banks lower their interest rates excessively d) savings do not grow and investment does not rise 4) The best analogy for the economy, Keynes said in his General Theory , is a) a see-saw b) an elevator c) a train wreck d) a watch 5) Roosevelt’s approach to business was a) government should stay out of business, as Adam Smith said b) the invisible hand will, with time, correct the economy c) government should master the economy to protect the public d) unregulated self-interest serves business as well as government...
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