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:

Enter

To participate or become involved in a particular activity or sphere; in business, it may refer to entering a market, indicating the beginning of efforts to compete within a given market area.

Efficient Markets

Markets in which all relevant information is fully and immediately reflected in asset prices, ensuring that securities are always fairly priced.

Profit Opportunities

Situations or conditions that allow businesses or individuals to earn a return on investment above normal expectations.

Eliminated

Removed or taken away, typically referring to the action of completely doing away with something.