When the economy is hit by spending fluctuations, the government can try to minimize the effects by

Question

Quizplus · Accepted Answer

When the economy is hit by spending fluctuations, the government can use multiple tools to try and minimize the effects. By changing taxes, the government can encourage or discourage spending, which can have an impact on the economy. Similarly, changing government expenditures on services or goods can also have an impact on the economy, as it can change the amount of government money flowing into various sectors. Therefore, the best choice is D, all of the above.

When the Economy Is Hit by Spending Fluctuations, the Government