In The General Theory of Employment, Interest, and Money, Keynes
A)recommended international trade to increase economic stability after recessions.
B)encouraged government actions to shorten the recovery time of recessions..
C)supported free markets.
D)observed budget surpluses were necessary fixes following budget deficits.

Question

Quizplus · Accepted Answer

Keynes believed that during a recession, the government should increase spending to stimulate demand and shorten the recovery time. This is known as deficit spending, which is meant to be temporary and reversed during times of economic growth. Keynes did not support free markets or austerity measures such as budget surpluses following deficits. While international trade may have some benefits, it is not a major focus of The General Theory.

In the General Theory of Employment, Interest, and Money, Keynes