Which of the Following Is Most Likely to Close a Recessionary

question 116

Multiple Choice

Which of the following is most likely to close a recessionary gap in the economy?

• A)A decrease in the expenditure on infrastructure
• B)An increase in the income tax rate
• C)An increase in the rate of foreign exchange
• D)A decrease in money supply
• E)An increase in the compensation for government employees

---

Definitions:

Authority

The power or right to make decisions, give orders, and enforce obedience.

Principal

The main party to a transaction, such as the owner of a business, or the amount of money loaned or invested, excluding interest or profits.

Power of Attorney

A legal document authorizing one person to act on another's behalf in legal or financial matters.

Equal Dignity Rule

A rule requiring that contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.