The economy goes into recession. Which of the following lists contains things policymakers could do to try to end the recession?

Question

Quizplus · Accepted Answer

To combat a recession, policymakers can increase the money supply (to lower interest rates and encourage borrowing and investment), decrease taxes (to increase disposable income and stimulate demand), and increase government spending (to directly stimulate demand). These measures are aimed at boosting economic activity.

The Economy Goes into Recession