Question

During an economic crisis, John Maynard Keynes would most likely encourage a government to:

A.
seize control of the country's largest businesses.

B.
cut government spending to avoid a budget deficit.

C.
allow businesses to freely develop a solution.

D.
borrow money to pay for economic relief programs.

Answer 1

D. borrow money to pay for economic relief programs.

Step-by-step explanation:

During an economic crisis, John Maynard Keynes, a renowned economist, would most likely encourage a government to increase spending and borrow money to stimulate demand and create jobs. This approach is known as Keynesian economics, which holds that during a recession or depression, the government should intervene in the economy to increase spending and provide economic relief. Keynes argued that in times of crisis, consumers and businesses may cut back on spending, which can exacerbate the economic downturn. By borrowing and spending money on infrastructure projects or other stimulus programs, the government can help to increase demand and stabilize the economy. Therefore, option D, borrow money to pay for economic relief programs, is the answer that best aligns with Keynesian economic principles.