Asked by Chloe Myers on May 06, 2024
Verified
Keynes believed that the best method for boosting an economy during a recession was to:
A) increase money supply so that individuals would have more incentive to spend.
B) cut government spending and increase taxes to reduce or even eliminate fiscal deficit.
C) increase government spending and cut taxes so that consumers could spend more.
D) cut both government spending and taxes to reduce government expenditure in the economy.
E) increase both government spending and taxes to increase the role of government in the economy.
Government Spending
Expenditures by the government for goods and services that directly benefit the population, including spending on health, education, defense, and public infrastructure.
Keynes
Refers to John Maynard Keynes, a British economist whose theories on government spending and monetary policy formed the basis of Keynesian economics.
- Analyze how government actions, including fiscal and monetary policies, influence the total demand and supply in the economy.
- Examine the principles of macroeconomics concerning the effects of wealth, interest rates, and fiscal policy on the economic landscape.
Verified Answer
Learning Objectives
- Analyze how government actions, including fiscal and monetary policies, influence the total demand and supply in the economy.
- Examine the principles of macroeconomics concerning the effects of wealth, interest rates, and fiscal policy on the economic landscape.
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