What did Keynes and Hayek believe about government central planning?
a. Both believed that central planning could be used to allocate resources efficiently.
b. Both believed that perverse political incentives would undermine the ability of central planners to allocate resources efficiently.
c. Keynes believed that government central planning could improve on market outcomes; Hayek disagreed, arguing that both political incentives and insufficient information would undermine their ability to do so.
d. Keynes believe that central planning would fail because the policy-makers did not have sufficient information to plan efficiently; Hayek believed that efficient central planning was possible if political decisions were made democratically.
C
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