Which of the following measures would a president adhering to Keynesian economic principles most likely employ during an economi
c recession? Choose 1 answer: Choose 1 answer: (Choice A) A A budget with significant cuts in federal spending on entitlement programs like Medicaid (Choice B) B A budget that cuts corporate income tax rates and decrease regulation of the economy (Choice C) C A budget that raises the federal interest rate from 1.65% to 1.8% (Choice D) D A budget with significant additions of public work projects to provide employment for Americans without jobsWhich of the following measures would a president adhering to Keynesian economic principles most likely employ during an economic recession? Choose 1 answer: Choose 1 answer: (Choice A) A A budget with significant cuts in federal spending on entitlement programs like Medicaid (Choice B) B A budget that cuts corporate income tax rates and decrease regulation of the economy (Choice C) C A budget that raises the federal interest rate from 1.65% to 1.8% (Choice D) D A budget with significant additions of public work projects to provide employment for Americans without jobs
D A budget with significant additions of public work projects to provide employment for Americans without jobs
Explanation:
Keynesian economics deals with how the government should increase demand to boost economic growth.
Keynes advocates for an increase in government expenses and lower taxes to stimulate demand.
Government has to increase its spending during recessionary times. This prevents the increase in demand that spurs inflation.
The option which has an increased spending by the government is A budget with significant additions of public work projects to provide employment for Americans without jobs.
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