Keynesian economists believed that the prolonged unemployment of the 1930s was the result of
a. the sharp reduction in the supply of money during 1929-1933 and another monetary contraction in 1938.
b. the high interest rates of the 1930s.
c. the double-digit inflation of the 1930s.
d. insufficient aggregate demand and the failure of market forces to direct the economy back to full employment.
D
You might also like to view...
Which of the following statements is TRUE?
A) investment = disposable income + consumption B) saving = personal income + consumption C) saving = personal income - consumption D) saving = disposable income - consumption
The asset demand for money is related to which function of money?
A) standard of deferred payment B) store of value C) medium of exchange D) unit of accounting
Describe the channels through which an open market purchase of bonds by the Fed affects output in a closed economy
What will be an ideal response?
What Congressional act, enacted in 1933 and repealed in 1999, prevented financial firms from being both commercial banks and investment banks?
A) the Glass-Steagall Act B) the Cellar-Kefauver Act C) the Sarbanes-Oxley Act D) the Taft-Hartley Act