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

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

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

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

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

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

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

 
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