The existence of an THIS implies that a relatively small fiscal stimulus can have a relatively large effect on the important variables of the economy, i.e., total spending and employment.
What is an investment multiplier?
100
Keynes was born in THIS YEAR, exactly a century before the birth of Tiger's Triple Crown winner, Miguel Cabrera.
What is 1883?
100
Contrary to classical economic thought, Keynes believed that wages and prices have THIS CHARACTERISTIC, just like maple syrup.
What is sticky?
100
This is the type of relationship that exists between bond prices and the interest rate.
What is an inverse relationship?
100
The idea that aggregate savings will always equal investment at full employment is fundamental to THIS CLASSICAL ECONOMIC PRINCIPLE.
What is Say's Law?
200
Keynes believed the only way to move the economy from an equilibrium at less than full employment to a full-employment equilibrium was to improve THIS by means of expansionary fiscal policy.
What is aggregate demand?
200
Keynes attended THIS FINE COLLEGE, whose notable alumni include E.M. Forster and Tamasin Day-Lewis, sister of Lincoln's Daniel Day-Lewis.
What is King's College, Cambridge?
200
Keynes theorized that individuals would prefer to hold bonds rather than money when interest rates are at THIS LEVEL.
What is high?
200
The idea that falling prices can improve the situation faced by a depressed economy is often referred to as THIS uncreatively named phenomenon.
What is the Keynes effect?
200
In order for savings and investment to adjust to equilibrium, the interest rate must be THIS - like Michigan's own Jordyn Wieber.
What is flexible?
300
In the presence of a liquidity trap, Keynes believed THIS TYPE OF POLICY was helpless to improve unemployment and economic conditions.
What is Monetary Policy?
300
THIS FAMOUS ECONOMIST encouraged Keynes to use his intellectual giftedness to purse economics.
Who is Alfred Marshall?
300
The value of THIS GROWTH FACTOR is equal to the change in income divided by the change in investment or 1/(1-MPC).
What is the multiplier?
300
Keynes believed that falling prices may reduce the level of THIS, even with declining interest rates.
What is Investment?
300
While classical economists considered that individuals hold money only for THIS PURPOSE, Keynes argued that, in addition, they would hold money in order to speculate in the bond market.
What are transactions?
400
Although Keynes believed THIS COMMON SPENDING TACTIC may work to get an economy "unstuck" from an unemployment equilibrium, he did not believe it would be enough to correct a seriously depressed economy.
What is "Priming the Pump"?
400
THIS WRITER famous for works such as 'To The Lighthouse' and 'Mrs. Dalloway' was friends with Keynes as a result of their time in the Bloomsbury Group.
Who is Virginia Woolf?
400
Keynes adhered to the Cambridge approach to the quantity theory of money represented as M=kPY, where k stands for THIS.
What is the transactions demand for money (or reciprocal of velocity)?
400
Keynes differed from classical economists with his belief that an equilibrium output level, though stable, does not only occur at THIS state of the economy.
What is Full Employment?
400
According to the classics, the demand for labor is equivalent to THIS aspect of labor.
What is the marginal productivity of labor?
500
When interest rates fall below a certain level, Keynes concluded that monetary policy is useless due the SITUATION KNOWN AS THIS.
What is a liquidity trap?
500
Keynes took part in THIS SPORT, for which he was believed to belong to the Monarch Club, during his time at Eton College.
What is rowing?
500
The alternative between holding bonds and holding money is referred to as THIS.
What is a "liquidity preference"?
500
Keynes viewed THIS ASPECT OF AGGREGATE DEMAND as the most volatile.
What is Investment Demand?
500
In the quantity theory of money, MV = PY, V stands for THIS.