According to the Keynesian View, the Proper Response to a Severe

question 61

Multiple Choice

According to the Keynesian view, the proper response to a severe recession would be

• A) an increase in taxes in order to reduce the budget deficit.
• B) an increase in government spending financed by borrowing.
• C) a shift toward a restrictive monetary policy to reduce aggregate demand.
• D) reliance on automatic stabilizers to direct the economy toward full employment.

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Definitions:

Unmaterialistic

Not placing importance on physical possessions or wealth; valuing experiences or relationships more than material things.

Adulthood

A period in human development after adolescence characterized by full physical development, legal responsibility, and increased social and economic independence.

Life Span

The maximum length of time an organism can live, determined by genetic factors.

Prenatal

Pertaining to the period or development before birth.