In Order to Shorten a Recession When the Economy Is

question 142

Multiple Choice

In order to shorten a recession when the economy is producing below full employment, the monetary authority could:

• A) expand the money supply.
• B) raise taxes in order to close the budget deficit.
• C) contract the money supply.
• D) decrease government spending.

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Definitions:

Cause-And-Effect

The principle that an action or event will produce a certain response or effect in the form of another event.

Negative Correlation

A relationship between two variables where one variable increases as the other decreases, and vice versa.

Computer Technology

The use of computers and software to manage information, including the development, maintenance, and use of computer systems, software, and networks for processing and distributing data.

Anonymity

The state of being anonymous, where an individual's identity is not known or is deliberately concealed.