Question

“The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes.” 1. This quotation best supports which of the economic theories of John Maynard Keynes? a.) Businesses and jobs rely most strongly on consumer demand. b.) Government regulation is necessary to stabilize the economy. c.) Markets operate best when allowed to operate freely. d.) Private individuals can best make their own economic decisions.

Answer 1

John Maynard Keynes believed in government intervention into the economy to regulate the markets. Therefore, this statement would signify Keynes' view that B) government regulation is necessary  to stabilize the economy.