According to the Keynesian View, Which of the Following Would

question 30

Multiple Choice

According to the Keynesian view, which of the following would most likely stimulate real output if an economy were in a recession?

• A) a decrease in tax rates
• B) an increase in tax rates
• C) a reduction in government expenditures
• D) a budget surplus

---

Definitions:

Sport Fishing

The recreation of catching fish for pleasure or competition, as opposed to commercial fishing.

Sewage

Wastewater that typically contains contaminants and is produced by residential, industrial, and commercial establishments, requiring treatment before being released into the environment.

Natural Extinction

The process by which species become extinct due to natural factors such as environmental changes, loss of habitat, or failure to adapt to competition.

Tropical Rain Forests

Diverse ecosystems located around the Earth's equator characterized by high annual rainfall, constant warm temperatures, and a vast variety of plant and animal life.