If the Economy Is in a Recession,the Most Appropriate Fiscal

question 221

Multiple Choice

If the economy is in a recession,the most appropriate fiscal policy would be to:

• A) decrease government spending in order to balance the budget.
• B) decrease both government spending and taxes.
• C) increase government spending and cut taxes,thus running a higher budget deficit.
• D) increase government spending and increase taxes in order to keep the budget balanced.

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Definitions:

Cognitive Styles

Individual differences in the way people perceive, think, solve problems, learn, and relate to others.

Self-Efficacy

An individual's belief in their own capability to execute behaviors necessary to produce specific performance attainments.

Opportunity Recognition

The ability to identify and assess potential business or growth opportunities in the market or environment.

Idea Generation

The creative process of generating new, innovative ideas for potential solutions, products, or improvements.