What did Keynes believe was the best method for ending the Great Depression?
A) increase the money supply in order that individuals would have more to spend
B) cut government spending and increase taxes in order to reduce or even eliminate the government's deficit
C) increase government spending and cut taxes in order that consumers could spend more
D) cut government spending and taxes in order that government would NOT be such a large part of the economy

Question

What did Keynes believe was the best method for ending the Great Depression?  
A) increase the money supply in order that individuals would have more to spend 
B) cut government spending and increase taxes in order to reduce or even eliminate the government's deficit 
C) increase government spending and cut taxes in order that consumers could spend more 
D) cut government spending and taxes in order that government would NOT be such a large part of the economy

Quizplus · Accepted Answer

Keynes believed in the concept of deficit spending and proposed increasing government spending and cutting taxes in order to stimulate demand and encourage consumer spending, which would then lead to economic growth and increased employment opportunities. He argued that in times of economic downturn, the government should play an active role in stabilizing the economy by using fiscal policy to increase demand and thereby promote economic recovery. This approach is commonly referred to as "Keynesian economics" and has since become a widely accepted framework for macroeconomic policy.

What Did Keynes Believe Was the Best Method for Ending