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Keynes believed that the best method for boosting an economy during a recession was to _____ a. increase money supply so that individuals would have more incentive to spend. b. cut government spending and increase taxes to reduce or even eliminate fiscal deficit. c. increase government spending and cut taxes so that consumers could spend more. d. cut both government spending and taxes to reduce government expenditure in the economy. e. increase both government spending and taxes to increase the role of government in the economy.

Respuesta :

Lanuel

Answer:

c. increase government spending and cut taxes so that consumers could spend more.

Explanation:

John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.

Keynes believed that the best method for boosting an economy during a recession was to increase government spending and cut taxes so that consumers could spend more. This would lead to an aggregate demand.

Aggregate demand (AD) can be defined as the total quantity of output (final goods and services) that is demanded by consumers at all possible price levels in an economy at a particular time.

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