Which of the following is a Keynesian approach for dealing with a recession?
A)Raise interest rates.
B)Increase government expenditure.
C)Raise taxes.
D)Increase supply incentives for producers.

Question

Quizplus · Accepted Answer

A Keynesian approach advocates for increased government expenditure during a recession to stimulate demand and boost the economy. Raising interest rates (choice A) would have the opposite effect and discourage borrowing and spending, which could worsen the recession. Raising taxes (choice C) could also decrease consumer spending and business investment. Increasing supply incentives for producers (choice D) may not address the issue of reduced consumer demand that is causing the recession.

Which of the Following Is a Keynesian Approach for Dealing