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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


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inia

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inia

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inia

ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing e

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