Keynes argued that the surest way to bring the economy out of the Great Depression was to:
A) keep the economy in a liquidity trap until antitrust policy could be enforced.
B) use expansionary fiscal policy.
C) increase taxes and spend less.
D) leave the economy alone, and flexible wages and prices would eventually lead to increases in income and employment.

Question

Quizplus · Accepted Answer

Keynes believed that government intervention in the form of expansionary fiscal policy, such as increasing government spending and lowering taxes, would stimulate demand and increase employment, ultimately bringing the economy out of the Great Depression.

Keynes Argued That the Surest Way to Bring the Economy