Keynesians believed that the economy could get out of the Great Depression if:

Question

Quizplus · Accepted Answer

Keynesians believed that the government needed to spend enough money to offset the decrease in aggregate demand caused by a fall in consumption and investment spending. This approach is known as fiscal policy, and it involves the government increasing spending or reducing taxes to stimulate demand and boost economic growth. Fiscal policy is in contrast to monetary policy, which involves central banks adjusting interest rates or the money supply to influence economic activity. Therefore, option C is the correct answer as it reflects the Keynesian view on the solution to the Great Depression.

Keynesians Believed That the Economy Could Get Out of the Great