According to the theory of economic fluctuations,Japanese policymakers should respond to the economic impact of the Japanese earthquake in 2011 by
A) raising interest rates and income taxes in order to encourage Japanese saving.
B) seeking foreign aid.
C) doing nothing.
D) increasing government spending and restoring both confidence and spending of Japanese consumers and firms.
E) reducing government spending so that the government can prepare for more spending in the future.
Correct Answer:
Verified
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