Which of the following is not an example of the use of activist Keynesian fiscal policy in recent times?
A) In 1994, the Japanese government formulated a plan to increase spending and cut taxes in order to help their ailing economy.
B) In 2001, George W. Bush led the effort for a tax cut to provide stimulus to a sluggish economy.
C) In the late 1990s the Chinese government increased spending to prevent severe economic activity.
D) In 2001- 2003, the Federal Reserve lowered the interest rate several times to help spur investments and get the economy out of its sluggish growth.
Correct Answer:
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Q127: Recall Application 3, "John Maynard Keynes: A
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