USA HISTORY

PROTESTS ACTIVISM AND CIVIL DISOBEDIENCE 1954 1973

THE STUDENT MOVEMENT OF THE 1960S

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The results of the economic policies of the Eisenhower Administration caused President John Kennedy to support
A
a continuation of fiscal responsibility throughout his term
B
a move toward Keynesian policies to stimulate the economy
C
economic conservatives opposed to a tax cut
D
increasing tariffs against communist countries
Explanation: 

Detailed explanation-1: -Stabilizing the economy For example, Keynesian economists would advocate deficit spending on labor-intensive infrastructure projects to stimulate employment and stabilize wages during economic downturns. They would raise taxes to cool the economy and prevent inflation when there is abundant demand-side growth.

Detailed explanation-2: -The Policy Response The Keynesians of the 1970s believed, as many economists do today, that increased government spending and lower interest rates can counter downturns in aggregate demand that might otherwise become self-reinforcing.

Detailed explanation-3: -Keynes concluded that lowering interest rates, expanding the money supply, and other monetary policies could only go so far. Getting an economy out of a deep depression, he argued, required fiscal policy measures such as government borrowing and deficit spending.

Detailed explanation-4: -Keynesian economics, body of ideas set forth by John Maynard Keynes in his General Theory of Employment, Interest and Money (1935–36) and other works, intended to provide a theoretical basis for government full-employment policies.

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