Practice Quiz 5 Answers

By the millions they quit buying anything except what

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ons they quit buying anything except what they had to save to stay alive. This drop in spending threw the stores into trouble, and they quit ordering [new products] and discharged clerks. When orders stopped the factories shut down, and factory workers had no jobs" This quote describes: a. the multiplier b. the Quantity Theory c. the accelerator d. the Phillips curve this is the multiplier 12. The Great Depression was a truly momentous time in US history, one where US policy makers turned to the theories of Keynes for the basis of policies designed to get the US out of the depression. While all of the following would be theoretically possible policies for getting the economy out of the Great Depression, which was the fiscal policy favored by Keynes in an environment where both businesses and individuals suffered from a lack of confidence? a. a tax cut to businesses b. a reduction in interest rates c. an increase in the money supply d. an increase in government spending Keynes was very clear, he favored fiscal policies that would have a direct affect on AD 13. What can...
View Full Document

This document was uploaded on 03/01/2014 for the course ECN 202 at Rhode Island.

Ask a homework question - tutors are online