In a recession Keynesians emphasize the need to ________ government spending or ________ taxes,which will cause a multiplier reaction.
A)increase;decrease
B)decrease;decrease
C)increase;increase

Question

Quizplus · Accepted Answer

During a recession, Keynesians believe that the government should increase spending or decrease taxes in order to stimulate demand and drive economic growth. This is because increased government spending or higher disposable income due to tax cuts will lead to increased consumer spending, which in turn will lead to increased business investment and further economic growth. This is known as the multiplier effect. Therefore, option A - increase government spending or decrease taxes - is the correct answer.

In a Recession Keynesians Emphasize the Need to ________ Government