If the government wanted to move the economy out of a current recession,which of the following might be an appropriate policy action?

Question

Quizplus · Accepted Answer

Increasing transfer payments, such as unemployment benefits or stimulus checks, would put money directly into the hands of consumers, who would then spend more and stimulate demand in the economy. This would help to move the economy out of a recession. Decreasing government purchases of goods and services (A) would have the opposite effect, as it would reduce demand further, while increasing taxes (C) would reduce disposable income and also reduce demand. Decreasing government debt (D) would not necessarily have an immediate impact on the economy and would depend on how it is achieved.

If the Government Wanted to Move the Economy Out of a Current