Keynesian Economic Theory postulates that production and economic growth are stimulated by: A Lower government spending and decreased government borrowing B Higher government spending and decreased government borrowing C Lower government spending and increased government borrowing D Higher government spending and increased government borrowing

The correct answer is the option D: Higher government spending and increased government borrowing.

Explanation:

To begin with, in the economic science the "Keynesian Economic Theory" represents one of the most famous approach in the area and that specifically focus on the study of the economy as a whole with the purpose of stimulating the economy by increasing the government spending and borrowing in order to achieve a higher inversion in the public sector so that more jobs will be generate it and with that more spending from part of the workers will take place in favor of the private sector. It was developed by John Keynes in 1936 with the purpose of trying to give a different focus on the way the economy was handle after the Great Depression of 1929.