2 July Economic Factors Welcome to your Economic Factors Keynesian economic theory deals with: Controlling the economy through regulating money supply. Controlling the economy through budget/government spending and taxation policies. Incentivizing responsible economic behaviors through Congressional legislation and agency regulations. None of the above. None GDP must be negative for ________ quarters to be considered a recession. 4 3 2 1 None Economic theory that says economy is best controlled through taxation and government spending is known as: Monetarist Economy Theory Classical Economic Theory Keynesian Economic Theory Open market operations None The money supply will tighten based on which of these techniques of monetary policy: The Federal Reserve reduces the reserve requirement. The Federal Reserve purchases government securities from primary dealers. The U.S. Government decreases government spending. The Federal Reserve increases the discount rate. None Time's up