Question

Ben Bernanke, the former Chairman of the Federal Reserve Board was quoted as saying “the problem with QE is that it works in practice, but it doesn’t work in theory”

Select one:

True

False

John Keynes wrote in The General Theory that “we devote our intelligence to anticipating what average opinion expects average opinion to be”

Select one:

True

False

Jim Crotty wrote that “the future is inherently unknowable – the world is characterized by uncertainty rather than calculable risk”

Select one:

True

False

Answer 1

True

Ben Bernanke made this statement in regards to his confidence in QE. He used quantitative easing to deal with the recession of 2008-09.

True

John Maynard Keynes stated this with respect to how he defined third degree which basically was in the context of a beauty competition. The judges were believed to pick not the models which they themselves found the prettiest or most fit but those which they felt most likely to catch the fancy of ths other competitors.

False

This statement was given by John Maynard Keynes as a part of an assumption set that would give a more realistic view of the world of finance. Because it real life, finance is not always determined by calculated risks but a lot of uncertainty that come in almost daily.