In principle,the government could increase the money supply or government expenditures to try to offset the effects of a wave of pessimism about the future of the economy.

Question

Quizplus · Accepted Answer

Increasing the money supply or government expenditures can help boost aggregate demand and stimulate economic activity, which could counteract the negative effects of pessimism about the economy. However, there are many factors that can influence the effectiveness of these measures, and they may not always be appropriate or feasible depending on the specific circumstances.

In Principle,the Government Could Increase the Money Supply or Government