Asked by Hannah Silene on May 13, 2024

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John Maynard Keynes believed that

A) the market forces would soon cure the Great Depression.
B) the federal government should balance its budget every year.
C) we could spend our way out of the Great Depression.
D) we should scrap the capitalist system and have the government take over the ownership of the means of production.

John Maynard Keynes

A UK-based economist who significantly transformed both the theoretical and practical aspects of macroeconomics, as well as the economic strategies executed by governments.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States following the stock market crash of 1929.

  • Identify the historical significance and impacts of particular fiscal strategies and taxation adjustments on economic health.
  • Identify the role of discretionary fiscal policies in managing economic fluctuations.
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DM
Danielle MeeksMay 15, 2024
Final Answer :
C
Explanation :
Keynes believed in the concept of deficit spending, where the government would spend money to stimulate demand and create jobs, even if it meant running a budget deficit. He argued that in times of economic downturns, the government should increase spending to boost demand and stimulate the economy, rather than relying solely on the market forces to correct the situation. This concept came to be known as Keynesian economics and became a significant influence on economic policymaking in the years following the Great Depression.