The concept of fiscal policy is based fundamentally on the ideas of ______.
Answer & explanation
Correct answer: option 3
The correct answer is Option 3 - John Maynard Keynes
The concept of fiscal policy is based fundamentally on the ideas of John Maynard Keynes
John Maynard Keynes is considered the father of modern macroeconomics and his theories heavily influenced the concept of fiscal policy. He argued that governments could use changes in taxation and spending to influence economic activity and achieve economic goals like full employment and price stability.