John M. Keynes
"Pump-Priming"
Problem #1
Problem #2
Problem #3
100
Those who Keynes condemned for actions that he believed would hurt the economy
What is economists and politicians?
100
How the expenditure would boost national income Hint: it's a term from this chapter
What is expenditure multiplier?
100
Keynesians believe that these are wasted money since they are not used to purchase job-creating goods and services.
What is savings?
100
The second problem with using government borrowing as a tool of fiscal policy
What is " Government borrowing becomes addictive"?
100
The third problem with using government borrowing as a tool of fiscal policy
What is "Government Borrowing Destroys a Nation's Future Productivity."? Dont have to get it word for word
200
An attack written by Keynes on the reparations agreements made at Versailles at the end of WWI Books can be used
What is The Economic Consequences of the Peace?
200
The momentum of the economy would keep this rising
What is GNP?
200
By borrowing the funds from this, the government is believed to be liberating those captive, idle dollars by putting them back into service.
What is financial market?
200
This theory states that government should borrow in order to smooth the business cycle by pulling the economy out of recession
What is Keynesian theory?
200
Business firms use funds to create these types of jobs. By buying factories and equipment, they create products that will generate revenues sufficient to pay off loans and provide further employment.
What is permanent?
300
The college which Keynes attended
What is Eton and King's College?
300
The government would raise these when the economy became prosperous
What is taxes?
300
The fallacy becomes obvious when one realizes that these and other financial intermediates do not accept deposits only to let them sit idle.
What is banks?
300
This Minnesota Senator campaigned in 1984 under the Keynesian banner of increasing taxes to retire the tremendous deficit incurred in earlier years
Who is Walter Mondale?
300
Random: Over the past year,approximately how much money do you think the government borrowed per minute?
Over the last year, the government borrowed approximately $2.5 million every minute. That’s the equivalent of 8,244 flat screen HDTVs it cannot afford.
400
Keynes used this time in history to note that the major problem of the economy at the time was that more was being produced than was being bought
What is The Great Depression?
400
The government would use this to retire the dept
What is increased revenue?
400
Random: Along with china, who do you think owns a lot of our debt?
Japan, United Kingdom, Brazil, Taiwan, Russia
400
Voters showed their disdain for this part of Keynesian theory by their 49-state support for this republican candidate. Hint: He was our 40th president If you don't know the above hint: His name rhymes with Donald Feagan
What is Ronald Reagan?
400
For thought: Had our government (during one instance) not borrowed money, For what would the money have otherwise been used? In your own opinion
examples: business firms could have borrowed the funds to build larger factories and purchase more efficient equipment.
500
Random: How much do you think an average American worker's share of the national dept is? Hint: if you're thinkin it's somewhere near $20,000... ha! you're aiming small
Every American worker’s share of the national debt is more than $90,000.
500
Random: Just since Obama took office, how much do you think our national dept has gone up?
The day Obama took office the National Debt was 10,626,877,048,913.08, twenty one months later it is $13,561,623,030,891.79 an increase of $2,934,745,986,978... just since he took office... CRAZY!
500
the economy will be simulated through this if the government channels funds to itself
What is increased government spending?
500
Random: How much money do you think we owe China?
The Treasury Department estimates that our debt to China is approximately $843 billion. That is over $10,000 in debt for the average American family.
500
Random: How much do you think other nations owe in national debt?
According to the Department of the Treasury, foreign holders of our national debt are owed a combined total of about $4 trillion (June 2010).
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