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.

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Definitions:

Industry Averages

Statistical metrics that represent the standard or average performance, productivity, or financial health of companies within a certain industry.

Expenses

Costs incurred in the process of generating revenue, including operational costs like rent, utilities, salaries, and materials.

Sales

The process of selling goods or services in exchange for money or other compensation.

Supplier Relationship

The interaction and management of connections between a company and the businesses that supply the materials or services it uses in its operations.