KEYNES: "BON VIVANT AS SAVIOR"

1. What is "Say’s Law"?

2. Describe Keynes’ criticism of Say’s Law.

3. Why do people save? What effect (if any) does the interest rate have on household saving?

4. What is the "Paradox of Thrift"?

5. Describe the "Keynesian Multiplier."

6. What is the Keynesian solution to economic depression and recession?

7. Is a balanced budget a good idea during a recession? Why or why not?

8. Compare and contrast Karl Marx’s and Keynes’ views of Capitalism and government.

9. Discuss the successes and failures of Keynesian economic policy.