Keynesian economists believe that when an economy is in a recession, the government should:
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increase the money supply in the economy so that interest rates decline, reducing the cost of borrowing to finance new investment projects.
decrease tax rates rather than increase government spending because households always view such tax cuts as permanent and increase their current consumption.
increase its purchases rather than decrease taxes because households save a part of the increase in their income as a result of tax cuts.
increase the money supply in the economy so that an excess supply of money can induce households to increase their consumption expenditure.