5
lesson pretestMultiple Choice

Pretest

Question 5 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

John Maynard Keynes believed that governments should increase spending in order to

Answer
A
increase prices.
B
increase demand.
C
decrease demand.
D
increase supply.

Explanation

Keynes argued that when private spending is too low, governments can boost the economy by increasing their own spending. This raises overall demand for goods and services, which can encourage businesses to produce more and hire workers. Therefore, the correct choice is “increase demand.”

AI-written and checked against the verified answer.

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