4
QuizMultiple Choice

Economic Policy: Influential Theories

Question 4 • MCS Economics BL

Which best summarizes the philosophical difference between economists John Maynard Keynes and Adam Smith?

Answer
A
Keynes said government was the key to solving economic issues, while Smith believed government should take a hands-off approach.
B
Smith said government was the key to solving economic issues, while Keynes believed government should take a hands-off approach.
C
Smith believed in an "invisible hand" with which government pushes the economy, while Keynes did not agree with this idea.
D
Keynes believed in an "invisible hand" with which consumers push the economy, while Smith did not agree with this idea.
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