Coolidge and Hoover were liberals, they believed that the free interactions of the economic agents (households, businesses and public sector) in the markets, where they acted as producers and consumers, would generate the most efficient outcomes in terms of equilibrium prices and production levels. Therefore, state interventionism in the economy should be removed because it would be distorting the truly efficient results.
On the other hand, F. D. Roosevelt introduced economic measures based on Keynesian economics and on strong state interventionism. For instance, the New Deal was the package of measures that Rooselvelt implemented as a response to the Great Depression and its consequences. The whole plan was based on using the fiscal policy tools, more specifically increases in public spending, to boost the aggregate demand levels and, in turn, economic growth.
The correct answer is A) FDR believed government should play an active role in helping people: Coolidge and Hoover believed government should stay out of people's lives<span>.
Coolide and Hoover were advocates of the economic philosophy known as laissez faire. This philosophy focuses on having as little government interference in the economy as possible. On the other hand, FDR through his actions, clearly thinks that the federal government should help people.
This is evident by his New Deal Programs that he implemented during the Great Depression. This New Deal program made several different federal agencies that gave poor citizens money, jobs, and other types of support through this difficult era in American history. </span>
