Keynesian economic theory suggests
A) reducing government involvement in the free-market economy.
B) proposing long-term solutions in order to create wider swings in the business cycle.
C) a more permanent government involvement in the banking system, even creating a national banking system that owns and operates most of the global and regional banks.
D) short-term increases in government spending to stimulate the economy.

Question

Quizplus · Accepted Answer

Keynesian economic theory and later adaptations suggest that government policy could be effective in helping manage the economy. By increasing government spending on infrastructure such as the building and repair of roads, bridges, schools, and utilities, the government could help stimulate the economy.

Keynesian Economic Theory Suggests