How did the government attempt to manage the economy for three decades after World War II as a result of Keynes's influence?

You have to understand that there were 2 perspectives of how to proceed after WWII, a meeting was planned which led to the Bretton Woods system

Explainanation:

Keynes- Plan (UK) vs. White-Plan (US $)

White: represented the new creditor of the world (US)

Eco. policy needs to target balance of payment, countries ensure balance of payment equilibrium. Employment comes second.

Adjustment mechanism: countries that have a current account surplus should not adjust. The debt countries should adjust, not the creditors (surplus countries). Exchange rate is not allowed to change. Restrictive social policy. → Burden in deficit countries

Keyne: “ represented the” old creditor of the world (UK) → both Surplus/Deficit countries must adjust so the burden should not fall on one country, to reduce balance of payment disequilibrium.  

(to reduce the disequilibria in the BoP both surplus countries and deficit countries need to adjust so the burden is split)  → 1.  Symmetric adjustment to reduce BoP disequilibrium

→ 2. There should be a scope for domestic policy in favor of employment programmes . Countries should be able to adjust their fiscal and monetary policies should be used to help employment after WWII. → Burden shared.

→ because WWII had happened in Europe, they needed reconstruction and as Keyne was british he wanted it too (symmetric adjustment).

White was American and as the WWII damage had not reached the US (creditor country), he did not see why the burden should be split, as it would be of disadvantage to the US because the creditor ones are highly competitive. (asymmetric adjustment).  He said that they have to target the BoP equilibrium as a mandate to prevent new economic catastrophes.

→ In conclusion White: burden shifts towards deficit countries and Keyne Burden shared between Surplus and Deficit countries.

--> Keynes wanted distribution How would they exactly move surpluses to countries with deficits? →  By taxing it away, what you need is an agreement, what is the mechanism.

c is the correct answer.