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Economic Policy: Influential Theories

Question 10 • * HSA 26-27 Economics

Hayek disagreed with Keynes about expansionary policy because it could cause and influence consumer decisions.

Answer
A
positively
B
negatively

Explanation

Hayek argued that expansionary policy could distort price signals and encourage decisions that would not reflect underlying market conditions. In this sense, it could influence consumer decisions negatively, so the correct choice is “negatively.”

AI-written and checked against the verified answer.

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