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:

Title Company

A business that facilitates real estate transactions by verifying property titles, conducting closings, and issuing title insurance.

Escrow Agent

A neutral third party responsible for holding assets in trust until predetermined contractual conditions are met.

Insect Infestation

The presence of large numbers of insects in a place, causing damage or disease to crops, buildings, or animals.

Structural Defects

Flaws or imperfections in the construction or design of a building or structure that can affect its stability, safety, or usability.