To combat a recession, Keynesian fiscal policy recommends:
A)an increase in taxes.
B)an increase in government spending.
C)an increase in taxes and a decrease in government purchases to balance the budget.
D)a reduction in both taxes and government spending.

Question

Quizplus · Accepted Answer

Keynesian fiscal policy suggests increasing government spending to stimulate demand and economic activity during a recession.

To Combat a Recession, Keynesian Fiscal Policy Recommends