One way the government can use fiscal policy to fight a recession is to:
A) spend less money.
B) increase Social Security payments.
C) cut taxes.
D) reduce welfare subsidies.

Question

Quizplus · Accepted Answer

One way the government can use fiscal policy to fight a recession is by cutting taxes. This can stimulate spending and investment by consumers and businesses, which in turn can boost economic activity and reduce the severity of the recession. By putting more money back into the pockets of taxpayers, the government can help alleviate the negative effects of the recession on households and firms.

One Way the Government Can Use Fiscal Policy to Fight