when the economy is performing poorly the government will?

Question

A. pay down the debt
B. increase spending
C. increase taxes on individuals to pay for public assistance
D. Incur a surplus

Answer 1

B. To jump start a slow economy the government will print more money and spend it. Those receiving the money will spend it and all the while inflation begins going up.

Answer 2

The answer is B.

This strategy was first proposed by John Maynard Keynes, a strategy that successfully saved the entire world from the flaws of laissez-fare capitalism in the Great Depression.

President Bush (GWB) used the same strategy to save the US economy from depression after the collapse of the stock market bubble/9-11 shock. This, coupled with low interest rates, kept the US economy from imploding from its internal contradictions.

Answer 3

E. Screw it up more by creating programs and spending money to make it look like they are doing something, when in reality they are just making things worse.
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