Keynes believed that the best method for ending the Great Depression was to
A)increase the money supply so that individuals would have more to spend
B)cut government spending and increase taxes to reduce or even eliminate the government's deficit
C)increase government spending and cut taxes so that consumers could spend more
D)cut both government spending and taxes so that government would not be such a large part of the economy
E)increase both government spending and taxes to increase the role government played in the economy

Question

Quizplus · Accepted Answer

Keynes believed in increasing government spending and cutting taxes to stimulate consumer spending and boost the economy. This approach is known as Keynesian economics and is based on the idea that in times of economic downturn, the government should intervene to stimulate demand and increase employment. Increasing the money supply could also be a part of this approach, but it is not the primary method. Cutting government spending and increasing taxes would likely have the opposite effect and further depress the economy.

Keynes Believed That the Best Method for Ending the Great