29890
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5.4 Economic Policy: Influential Theories

Question 29890 • * HSA 26-27 Economics

The theory that governments should assist in economic crises through fiscal and monetary policy can be credited to [___].

Answer
A
Smith
B
Keynes
C
Hayek

Explanation

John Maynard Keynes argued that governments can help address economic downturns by using fiscal policy, such as public spending and taxes, and monetary policy to support demand and employment. This approach is known as Keynesian economics, so the correct choice is Keynes.

AI-written and checked against the verified answer.

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