Keynesian economists believe that when an economy is in a...

Keynesian economists believe that when an economy is in a recession, the government should:

• increase the money supply in the economy so that interest rates decline, reducing the cost of borrowing to finance new investment projects. 

• increase the money supply in the economy so that an excess supply of money can induce households to increase their consumption expenditure. 

• increase its purchases rather than decrease taxes because households save a part of the increase in their income as a result of tax cuts.

•         

  decrease tax rates rather than increase government spending because households always view such tax cuts as permanent and increase their current consumption. 

which one