To Combat a Recession with Discretionary Fiscal Policy,Congress and the President

question 270

Multiple Choice

To combat a recession with discretionary fiscal policy,Congress and the president should

• A)decrease government spending to balance the budget.
• B)decrease taxes to increase consumer disposable income.
• C)lower interest rates and increase investment by increasing the money supply.
• D)raise taxes on interest and dividends,but not on personal income.