Which economic theory suggests that the government should intervene with increased spending, even to the extent of borrowing, in order to transfer to individuals?
A)Keynesian economics
B)laissez-faire
C)neo-conservatism
D)neo-liberalism

Question

Quizplus · Accepted Answer

Keynesian economics suggests that during economic downturns, the government should increase its spending (even if it means borrowing) in order to transfer money to individuals to help stimulate demand and increase economic activity. This approach is based on the idea that increased government spending can help offset decreases in private spending during times of recession or stagnation.

Which Economic Theory Suggests That the Government Should Intervene with Increased