If the federal government wishes to move the economy out of a recessionary gap, the appropriate fiscal policy is a(n)
A)increase in taxes.
B)decrease in government purchases.
C)decrease in transfer payments.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

None of the above are correct because to move the economy out of a recessionary gap, the government should increase government purchases, decrease taxes, or increase transfer payments, which are not listed as options.

If the Federal Government Wishes to Move the Economy Out