Answer:
The given statement is true.
Explanation:
The economic theory of fiscal spending in the economy; the method had diverse effects on inflation. It was established by the economist from Britain in the 1900s, which was aimed at understanding the causes of depression. Based on his theory, the increased government spending and lowering of taxes will pull up the economy’s demand of the and reduce depression
The theory was also used in referring to the optima concepts of performance of the economy and the achievements that were determined through stabilization and interventions.
