John Maynard Keynes took a "hands off", "laissez faire" approach to economics.
False
Despite being a brilliant economist, Keynes was perpetually poor.
False
John Maynard Keynes was acknowledged by his contemporaries to be a brilliant man.
True
According to classical economics, whenever consumers decide to save more, the decreased consumption is offset by increased business investment.
True
Automatic stabilizers such as unemployment insurance and the stock market help counteract economic downturns.
False
According to Keynes, in order to close a $200 billion recessionary gap, it is necessary for the government to spend $200 billion.
False
Keynes scoffed at fluid, flexible wages and prices. He thought workers would refuse to accept lower wages during a recession.
True
The equation for the Keynesian multiplier is 1/(1-MPC).
True
To Keynes, well-intentioned savers (including harmless old ladies), inflict more damage on the economy than any wicked industrialist.
True
While in college, John Maynard Keynes joined a secret society called "The Apostles." The Apostles were known for being both intellectual and arrogant.
True
Keynes thought that recessions were started by a decrease in Aggregate Supply.
False