All of the following are likely to be effective at eliminating a recessionary gap except one.Which is the exception?
A)Reducing Social Security payments to beneficiaries
B)Reducing personal income taxes
C)Increasing government expenditures on the interstate highway network
D)Increasing farm subsidies
E)Reducing corporate income taxes

Question

Quizplus · Accepted Answer

Reducing Social Security payments to beneficiaries would likely decrease overall spending in the economy, making it less effective at eliminating a recessionary gap. The other options could increase spending, either through tax cuts or government spending on infrastructure or subsidies.

All of the Following Are Likely to Be Effective at Eliminating