CLEP US History II

Category - Economic Development

The foundation for the American economy following World War II was:
  1. Applied economic theory
  2. Binary economic theory
  3. Keynesian economic theory
  4. Developmentalist economic theory
  5. Mutualist economic theory
Explanation
Answer: C - John Maynard Keynes’ economic theory formed the foundation of America’s post-World War II economy. Keynesian economics advocates a mix of public sector and private sector business. It argues that the government should regulate some aspects of the economy, particularly banking. Keynes’ theory also states that the government should take an active role by spending to help the nation out of a recession or depression.
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