Which of the following had been a traditional belief prior to the

Question

Which of the following had been a traditional belief prior to the economic theories of John Maynard Keynes?

a. Balanced budgets were sacred.

b. A bimetallic standard was superior to the gold standard.

c. Depressions typically emerged from a consumers crisis of confidence.

d. A national economy always benefited from a trade surplus.

e. Deficits are not a problem, as long as they do not enlarge national debt.

ANS: A TOP: A Reckoning with Liberty

DIF: Difficult REF: Full pp. 828829 | Seagull pp. 844845 MSC: Understanding

OBJ: 4. Assess the ways in which the New Deal recast the meaning of American freedom.

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