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

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Social Studies

Luciana Patel

14 October, 18:08

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

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Lizbeth Banks · Answer 1

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.