Question

Fill in the blanks to complete the passage about the ideas of the British economist John Maynard Keynes.

John Maynard Keyes, a British economist, believed that capitalism could create a just and efficient society if it were managed competently by national governments. First, he believed that – should be abandoned: governments should go into the red to boost sluggish economies. Then, he advocated the creation of –, that is, investments that entailed – but that were very socially productive. Keynes also endorsed – to rein in currency speculation and promote full employment. Keynes’s ideas were very influential in the Roosevelt administration’s collection of policies called the –.

high risk, safe bets, welfare spending, Popular Front, monetary control, deficit spending, balanced budgets, New Deal, venture capital, inflation

Answer 1

John Maynard Keyes, a British economist, believed that capitalism could create a just and efficient society if it were managed competently by national governments. First, he believed that balanced budgets should be abandoned: governments should go into the red to boost sluggish economies. Then, he advocated the creation of venture capital, that is, investments that entailed high risk but that were very socially productive. Keynes also endorsed monetary control to rein in currency speculation and promote full employment. Keynes’s ideas were very influential in the Roosevelt administration’s collection of policies called the New Deal.