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According to the Keynesian View, the Rapid Increase in Government

Question 131

Multiple Choice

According to the Keynesian view, the rapid increase in government spending and large budget deficits in response to the recession of 2008-2009 would


A) slow the recovery process and result in weak long-term growth of real GDP.
B) speed the recovery process and provide the foundation for strong long-term growth of real GDP.
C) stimulate a more rapid recovery, but cause the economy to fall back into a recession in the near future.
D) slow the recovery process, but provide the foundation for rapid long-term growth of real GDP.

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