Multiple Choice
According to the Keynesian view, if policy makers thought the economy was about to fall into a recession, which of the following would be most appropriate?
A) a reduction in government expenditures and/or an increase in taxes
B) an increase in government expenditures and/or a reduction in taxes
C) make no policy changes because market forces will assure the maintenance of full employment.
D) maintain a balanced budget
Correct Answer:
Verified
Correct Answer:
Verified
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