Which of the Following Is a Disadvantage of Addressing an Economic

question 66

Multiple Choice

Which of the following is a disadvantage of addressing an economic downturn through fiscal policy?

• A) Fiscal policy results in layoffs of government employees.
• B) Deficit spending has long-term consequences.
• C) It frequently results in tax increases.
• D) It tends to benefit the wealthy more than the poor and the working class.

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Definitions:

Financial Crisis

An economic condition marked by the sudden and severe downturn in financial markets, assets, or institutions, often resulting in widespread economic hardship.

Supporting Evidence

Material or information provided to substantiate claims, arguments, or hypotheses, strengthening the case being made.

Informative Message

A singular notice or bulletin released to provide specific details or facts to recipients in a clear and detailed manner.

Credit Limit

The maximum amount of credit that a financial institution extends to a client.