Suppose the Economy Is in a Recession

question 37

Multiple Choice

Suppose the economy is in a recession. To increase demand using discretionary fiscal policy, the government can

• A) raise interest rates.
• B) raise taxes or reduce government spending.
• C) increase government spending or reduce taxes.
• D) reduce interest rates.

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Definitions:

Bill Of Lading

A bill of lading is a legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of the goods being transported.

Storage Warehouse

A large building used for storing goods in a secure and organized manner.

Roof Tiles

Specially designed pieces, typically made of clay, concrete, metal, or synthetic materials, used to cover roofs.

Destination Contract

A contract specifying that the seller will bear the risk and the cost of delivering goods to a specific location.