The nation of Forlornia is in the middle of a severe financial crisis. The prime minister has increased government spending by trillions, in order to revive the ailing economy. Her strategy followed the economic theory known as
A) Malfusian.
B) Bernankeism.
C) Keynesian.
D) Greenspanian.

Question

Quizplus · Accepted Answer

Keynesian economic theory and later adaptations suggest that government policy could be effective in helping manage the economy. By increasing government spending on infrastructure such as the building and repair of roads, bridges, schools, and utilities, the government will purchase goods and services and put people to work.

The Nation of Forlornia Is in the Middle of a Severe