Which New Deal agency was designed to provide immediate financial assistance to citizens, reflecting Keynesian ideas?
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Correct answer: Federal Emergency Relief Administration (FERA)
FERA provided direct financial assistance to the unemployed. This increased purchasing power, consistent with Keynesian demand-stimulation strategies.
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More Keynesian Economics and New Deal questions
- What was a major goal of Keynesian policies during the New Deal?
- Which New Deal reform regulated banks and restored confidence in the financial system?
- Keynesian economics suggests that during a recession, governments should primarily:
- Which program aimed to support farmers by reducing agricultural surplus under the New Deal?
- What role did deficit spending play in New Deal policies?
- How did Keynesian theory view government budgets during economic downturns?