After the acceptance of Keynesian analysis,government:
A) played a role in setting the interest rate only.
B) actions toward macroeconomic policy grew significantly.
C) reduced its role in the operation of the economy.
D) turned to communism as the only solution to the Great Depression.

Question

Quizplus · Accepted Answer

The acceptance of Keynesian analysis led to an increased role of government in macroeconomic policy. This included government intervention in fiscal policy, monetary policy, and regulation of markets in order to mitigate economic downturns and stabilize the economy. Government did not reduce its role in the operation of the economy, rather it became more involved in managing it. The option of turning to communism as a solution to the Great Depression is not relevant to the acceptance of Keynesian analysis.

After the Acceptance of Keynesian Analysis,government