Keynesian Economic Theory Would Encourage Lawmakers to Run Federal Deficits

question 88

True/False

Keynesian economic theory would encourage lawmakers to run federal deficits during a recession to give a short-term boost to the economy but would encourage lawmakers to cut government spending when the economy is strong and consumer demand is high.

---

Definitions:

THC

Tetrahydrocannabinol, the psychoactive compound found in cannabis that produces mind-altering effects.

Major Active Ingredient

The component of a substance, usually a drug, that is primarily responsible for its effects on the body or mind.

Marijuana

A drug with mind-altering properties derived from the Cannabis plant, utilized either for health-related or leisure activities.

Nicotine

A stimulant and active ingredient found in tobacco, responsible for its addictive properties.