If the Economy Is Suffering from Demand Deficient Unemployment Then

question 13

Multiple Choice

If the economy is suffering from demand deficient unemployment then Keynes would recommend

• A)cutting long term interest rates in order to boost investment.
• B)increasing the level of government spending to shift the expenditure line upwards.
• C)changing the marginal propensity to consume to bring about equilibrium in the economy at full employment output.
• D)increasing imports to help boost national income by shifting the expenditure line upwards.

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