The main idea behind using fiscal policy to combat a recession is:
A. the government will make up for the decreased saving in the economy, preventing a downward spiral.
B. the government will supplement the increased saving in the economy, contributing to an upward spiral.
C. the government will make up for the decreased spending in the economy, preventing a downward spiral.
D. the government will supplement the increased spending in the economy, contributing to an upward spiral.
Ans: C. the government will make up for the decreased spending in the economy, preventing a downward spiral.
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The top policy goal for Paul Volcker when he became chairman of the Federal Reserve's Board of Governors in 1979 was
A) increasing regulation of commercial banks. B) increasing employment. C) a low current account deficit. D) fighting inflation. E) increasing economic growth.
Some environmentalists argue that we should protect the environment as much as possible, regardless of cost. Which of the following is not a likely outcome of pursuing such a course of action?
a. lower levels of nutrition, health care, and housing b. a lower standard of living c. slowing or reversing technological advancement d. the elimination of all pollution