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

Question

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

anonymous · Answer

@AnElephant @EsmeraldaT @Juakikun

anonymous · Answer

He'd probably encourage (B) decrease taxes across the board for individuals and businesses. 

Keynes believed that people had to spend to keep the economy healthy, and to do that, raising taxes would only slow things down and make it worse in making people less willing to spend.