1. In the Austrian pure free market, a nation with a low savings rate will have _______ interest rates and _______ levels of investment.
A) low; high B) high; high C) low; low D) high; low
2. According to Keynesian analysis; the proper government response to a recession is _________, whereas an Austrian would support __________.
A) the implemention of a corporatist bailout of insolvent firms; raising taxes
B) expansionary fiscal policy; expansionary monetary policy
C) increasing government spending; increasing the legal powers of the central bank to deal with the crisis
D) expansionary fiscal/monetary policy; laissez-faire.