Excess reserves equal total reserves plus required reserves

According to John Maynard Keynes, policy makers should respond to a downturn in the business cycle by:

A. Cutting taxes and increasing government spending. B. Cutting taxes and reducing government spending. C. Raising taxes and increasing government spending D. Raising taxes and reducing government spending E. Do nothing because government activism violates Keynes' laissez faire approach.

Milton Friedman published his famous book The General Theory of Employment, Interest, and Money in 1778

a. True b. False Indicate whether the statement is true or false