Which of the following policies would a Keynesian expect to produce the largest increase in income?

Question

Quizplus · Accepted Answer

According to Keynesian theory, increasing government spending can stimulate economic growth by increasing aggregate demand. This is because government spending directly contributes to GDP, and can also indirectly increase private investment and consumption. Therefore, an increase in government spending of $100 billion would be expected to have the largest impact on increasing income, compared to the other policy options listed.

Which of the Following Policies Would a Keynesian Expect to Produce