4
QuizMultiple Choice

New Mexico in World History and Global Events — Quiz

Question 4 • World History and Geography

How did Keynesian economic policies impact New Mexico in the 1950s?

Answer
A
These policies focused on reducing taxes, which harmed public services.
B
These policies led to a decrease in government spending, resulting in job losses.
C
These policies increased federal spending that created jobs and stimulated growth.
D
These policies had little effect on New Mexico's economy, which remained unchanged.

Explanation

Keynesian policies use government spending to boost economic activity, especially when private demand is weak. In 1950s New Mexico, increased federal spending—including spending connected to defense and military facilities—created jobs and supported economic growth. Therefore, the best answer is C: these policies increased federal spending that created jobs and stimulated growth.

AI-written and checked against the verified answer.

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