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29 March, 18:26

Economists warn that the nation is heading for a recession. Which of the following actions would John Maynard Keynes most likely support?

Increase funds for civic projects to put people to work

Decrease taxes across the board for individuals and businesses

Redistribute unemployment and Social Security funds to bail out failing banks

Reduce the money supply and keep interest rates high

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  1. 29 March, 18:41
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    The correct answer should be Decrease taxes across the board for individuals and businesses

    What this would do is enable companies to use the money that they would have to pay in taxes for something else like giving people jobs. This way there wouldn't be unemployment and difficulties, but this is in an ideal world.
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