Which of the Following Is a Supply-Side Policy Action to Eliminate

question 124

Multiple Choice

Which of the following is a supply-side policy action to eliminate a recession?

• A)Increased investment in infrastructure.
• B)The purchase of securities in the open market by the Fed.
• C)An increase in the marginal tax rate.
• D)A decrease in the reserve requirement.

---

Definitions:

Interest Revenue

The income earned from lending money or from investing in interest-bearing financial instruments.

Long-term Investments

Assets held for more than one year, including stocks, bonds, real estate, and other financial investments.

Current Operations

Activities related to the primary business objectives that generate revenue within the current fiscal period.

Controlling Influence

The power to govern the financial and operating policies of an entity to benefit from its activities.