Japan's increase in government spending financed by borrowing in response to the economic downturn and sluggish growth of the 1990s is most consistent with

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The increase in government spending and borrowing in response to economic downturns is a key principle of Keynesian economics, which advocates for government intervention through fiscal policy to stimulate economic growth and employment. The idea is that government spending can boost demand and create jobs, leading to a multiplier effect throughout the economy.

Japan's Increase in Government Spending Financed by Borrowing in Response