To bring an economy out of a recession or depression, Keynes recommended that the government
A) provide ceilings on interest rates paid by consumers and business
B) increase spending and make more money available for loans
C) increase taxes to decrease consumption and increase saving
D) regulate the price and output levels of major corporations

Question

Quizplus · Accepted Answer

Keynes advocated for increasing government spending and making more money available for loans as a way to stimulate demand in the economy, thereby helping to bring it out of a recession or depression. This approach is part of Keynesian economics, which emphasizes the role of government intervention in the economy during downturns.

To Bring an Economy Out of a Recession or Depression