During economic recessions, Keynesian economists prescribe to the theory that the national government should increase its spending and decrease taxes. Which aspect of Keynesian economics would today’s conservatives be most in support?

Question

A. Conservatives would be most in support of decreasing taxes.
B. Conservatives would be most in support of increasing spending.
C. Conservatives would be most in support of both decreasing taxes and increasing spending.
D. Conservatives would be most in support of neither decreasing taxes nor increasing spending

Answer 1

A. Conservatives would be most in support of decreasing taxes.

While Keynesian economists advocate for both increased government spending and decreased taxes to stimulate the economy during recessions, many conservatives typically prioritize tax cuts over increased government spending, believing that lower taxes can encourage investment and economic growth.