Keynesian Theory considers that fluctuations in economic activity are due to changes in effective demand
Option "D"
Explanation:
The theory of overall economic expenditure and impacts on output and inflation is the Keynesian economics.
Throughout the 1930s, Keynesian economics was founded in an effort to understand the Great recession by the British theorist John Maynard Keynes. In order to encourage demand and to draw out the global economy of anxiety, Keynes advocated increased government spending and lower taxes.
Keynesian theoreticians say this process is broken, so market growth is more erratic and vulnerable to extreme fluctuation. Without interference. Keep low-interest rates is an effort to encourage companies and people to borrow more money in order to encourage the business cycle. Borrowing is allowed to often increase expenditure for companies and individuals. These new expenditure boost the economy.
