The modern Keynesian approach to cure a recession might include
A)Expanding the money supply or increasing government spending.
B)Expanding the money supply or reducing government spending.
C)Contracting the money supply or increasing government spending.
D)Contracting the money supply or reducing government spending.

Question

Quizplus · Accepted Answer

The modern Keynesian approach advocates for expansionary fiscal policy during a recession, which includes increasing government spending and/or expanding the money supply through actions such as lowering interest rates or buying government bonds. This is done with the goal of increasing aggregate demand and stimulating economic growth.

The Modern Keynesian Approach to Cure a Recession Might Include