What Is an Economic Theory That Is Based on the Principle

question 56

Multiple Choice

What is an economic theory that is based on the principle that government should increase spending when economic times are bad as a way of raising total demand?

• A) trickle-down theory
• B) laissez-faire economics
• C) Keynesian economics
• D) open economy theory
• E) progressive taxation

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Definitions:

Indentured Servitude

A labor system prevalent in the American colonies and other parts of the world, where individuals worked for a contracted period in exchange for transportation, food, lodging, and at the end of their contract, often received "freedom dues" including land or money.

All But Disappeared

A phrase describing something that has virtually vanished or diminished to the point of near extinction.

United States

A country primarily located in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Tyranny Over The Mind

An expression or concept denoting extreme oppression or control over people's beliefs, thoughts, or intellect, possibly referencing Thomas Jefferson's views on religious freedom.