In the event of a recession,which of the following is the most likely policy stance of those who advocate a passive approach to economic policy?
A)Cutting taxes
B)Increasing government spending
C)Reducing interest rates
D)Increasing the money supply
E)Doing nothing

Question

Quizplus · Accepted Answer

Those who advocate a passive approach to economic policy believe that the economy will correct itself without government intervention. Therefore, the best choice is E, doing nothing. The other options, such as cutting taxes or increasing government spending, would be considered active policies and go against the philosophy of a passive approach.

In the Event of a Recession,which of the Following Is