Keynes Believed That the Best Method for Boosting an Economy

question 55

Multiple Choice

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.

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Definitions:

Exponential Expression

An expression that involves an exponent, indicating how many times the base is multiplied by itself.

Exponential Expression

A mathematical phrase where numbers or variables are raised to a power or exponent.

Associative Property

A mathematical rule stating that the way in which numbers are grouped in operations does not change their result.

Multiplication

A mathematical operation where a number is added to itself a certain number of times.