What was the US government's policy response to lower consumption and falling firm investment?

Question

Quizplus · Accepted Answer

In times of lower consumption and falling firm investment, the government usually implements expansionary fiscal policies to stimulate the economy. This includes increasing government spending and cutting taxes to put more disposable income into the hands of consumers and businesses. Therefore, the best choice is C, cut taxes and increased spending, which will increase consumption and investment.

What Was the US Government's Policy Response to Lower Consumption