Question

:D

Answer 1

Sorry, I don't know enough about economics to answer this question. Good luck!

Answer 2

I dont know.. Im sorry

Answer 3

The third option.

When, for any of these reasons, saving is withheld from investment, unemployment results, which in turn results in “overproduction”—that is, the previous output of products cannot be sold, because those who would buy them are now unemployed and penniless. This, in turn, results in a general depression which, given the nature of a free market, Keynes believes is capable of lasting indefinitely. The reason for this, Keynes maintained, is that in a depression there is not a surplus of savings available at a correspondingly low interest rate, but rather, an absence of savings as the general population withdraws money in the struggle to survive. Without saving, again, there is no investment; without investment, no employment; without employment, no spending; without spending, an overproduction of goods that can’t be sold. When all of this is added up, there is a depression without end: unemployed men and women amid underutilized plant and equipment and unsold goods.

Thus, Keynes believed, in order to "get the economy moving again," the government must itself begin spending money, since the general population is unable to do so sufficiently. How, and where the government spends its money, and whether such spending fulfills any desirable public or private purpose beyond its economic function, Keynes held, is irrelevant. For the sole purpose of such spending is to buy goods that would otherwise remain unsold, so that the sellers of those goods can in turn “buy,” i.e., employ, currently unemployed workers. Government spending, for Keynes, fills the gap that necessarily must exist in a free economy between savings and investment, a gap which, if not filled by the government's spending, would be filled with unemployed people and unsold goods.