The principle underlying fiscal policy states that when unemployment is rising and the economy is going into a recession, fiscal policy should:

A) stimulate economic activity by decreasing taxes.
B) curb economic activity by reducing government spending.
C) let the forces of supply and demand operate on their own.
D) employ a tight-money policy.
E) reduce the rate of growth in the amount of money in circulation.

A

Political Science

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What will be an ideal response?

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