According to Keynesian economic theory, what is the recommended approach to boost economic activity?

Multiple choice question for International Relations. Select an option, then review the explanation below.

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Increasing government expenditure to raise inflation levelsCutting budget deficits to promote economic expansionUsing government borrowing and spending to encourage economic growthImplementing strict fiscal policies to reduce inflation

Explanation

Keynesian economics supports the idea that government should engage in deficit spending—borrowing and spending more during downturns—to stimulate economic growth, rather than focusing solely on reducing deficits or controlling inflation through fiscal tightening.

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According to Keynesian economic theory, what is the recommended approach to boost economic activity?

Explanation

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