Keynes believed that to end the Great Depression:
A) only a government takeover of industry could save the economy.
B) the capitalist system needed only a narrow technical fix.
C) a decrease in government spending would increase the budget deficit.
D) a decrease in the money supply would cause inflation.

Question

Quizplus · Accepted Answer

Keynes believed that the capitalist system needed a "narrow technical fix" in which the government should increase its spending to stimulate demand and boost the economy. He did not support a government takeover of industry, nor did he believe that a decrease in government spending would increase the budget deficit. Additionally, he believed that a decrease in the money supply could worsen the depression, rather than cause inflation.

Keynes Believed That to End the Great Depression