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:

Microsystems

Small-scale, tightly integrated systems combining hardware and software to perform specific tasks, often part of a larger system.

Dwelling

A place where people live, such as a house or apartment.

Power

The ability or capacity to influence or control the behavior of others or the course of events.

Authority

The authority or capability to issue commands, make choices, and ensure compliance.