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    Keynesian theory

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    Keynes's analysis of the Great Depression led to which of the following recommendations regarding government policy?
    -An annually balanced budget
    -A decrease in government spending
    -An increase in government spending
    -An increase in taxes

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    Solution Preview

    Of the given options the best possible one is

    An increase in government ...

    Solution Summary

    Keynesian theory is briefly summarized in this solution.