If the economy is in a recession and prices are relatively stable, then the disc

Question

If the economy is in a recession and prices are relatively stable, then the discretionary fiscal policy or policies that would most likely be recommended to correct this macroeconomic problem would be: A. Decreased government spending or increased taxation, or a combination of the two actions B. Increased government spending or increased taxation, or a combination of the two actions C. Increased government spending or increased taxation, but not a combination of the two actions D. Increased government spending or decreased taxation, or a combination of the two actions E. None of the above

Explanation / Answer

Increased government spending or decreased taxation, or a combination of the two actions.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.