alleryStart learning →Keynesians say which pair of steps best raises aggregate demand?
AMore spending, higher taxes
BLess spending, lower taxes
CLess spending, higher taxes
DMore spending, lower taxes
Answer & Solution
Correct answer: D. More spending, lower taxes
Higher spending and lower tax rates add to demand, which is the Keynesian prescription.
Keep practising Public Finance
Browse all Public Finance questions for CA Foundation, or explore more Business Economics topics.
Related questions
The free rider problem assumes people are modelled as what?In a progressive tax system, higher earners pay what?What did Pigou recommend to curb over-production causing external harm?Why does Coasean bargaining fail for a polluting steel factory?Whose theorem says private bargaining can fix externalities?The Coase theorem needs which condition on transaction costs?Taxing producers so prices reflect full costs is called what?With positive externalities, output of the good tends to be what?