Economists warn that the nation is heading for a recession. Which of the following actions would John Maynard Keynes most likely
support?Increase funds for civic projects to put people to workDecrease taxes across the board for individuals and businessesRedistribute unemployment and Social Security funds to bail out failing banksReduce the money supply and keep interest rates high
John Maynard Keynes would most likely support "increasing funds for civic projects to put people to work"
Explanation:
John Maynard Keynes developed the Keynesian economics theory and stated that in times of economic downturns, such as recession, people become afraid and reduce their spending and investment. This leads to a general decrease in economic activities and an increase in unemployment.
According to Keynes, the government should increase its spending and infuse money into the economy, thereby increasing demand among consumers and stimulating economic activities which will lead to more employment.
