9
AssignmentDropdown

Economic Policy: Influential Theories

Question 9 • * HSA 26-27 Economics

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

Answer
A
inflation
B
unemployment
C
decreased growth

Explanation

Hayek argued that expansionary policies, such as increasing the money supply, could cause inflation and distort the price signals consumers use to make decisions. Thus the correct choice is inflation. Unemployment and decreased growth are not the main concern described here.

AI-written and checked against the verified answer.

Previous
Next