Karma106 Karma106

20-04-2015
Social Studies

Answered

why do economics often encourage governments to increase spending during times of recession even if they must borrow the money for that spending

Answer :

HistoryGuy HistoryGuy

20-04-2015

Certain economics theories (especially Keynesean economics) often encourage governments to increase spending during times of recession even if they must borrow the money for that spending because this is the only way to inject cash into the economy. The money must come from somewhere.

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