Which of the following would be an appropriate discretionary fiscal policy to use when the economy is in a recession?
A) increased government spending
B) higher taxes
C) a balanced-budget reduction in both spending and taxes
D) an expansion in the money supply

Question

Quizplus · Accepted Answer

Increased government spending can stimulate the economy by creating jobs and increasing consumer demand, which can help to boost economic growth and output during a recession.

Which of the Following Would Be an Appropriate Discretionary Fiscal