The economist whose writings in the 1930s argued that the cause of an economic depression is inadequate spending was:
A) Herbert Hoover.
B) John Maynard Keynes.
C) Andrew Mellon.
D) Joseph Schumpeter.

Question

Quizplus · Accepted Answer

John Maynard Keynes argued in his book "The General Theory of Employment, Interest and Money" that in times of economic depression, inadequate spending led to a decrease in demand, which in turn led to lower production and higher unemployment. He believed that government intervention in the form of increased spending and/or tax cuts could stimulate demand and kickstart economic growth.

The Economist Whose Writings in the 1930s Argued That the Cause