In an effort to stop the U.S.recession of 2007-2009,the federal government:
A) reduced taxes and increased government spending.
B) imposed large tariffs on many imported goods to protect domestic jobs.
C) raised interest rates to encourage greater business investment.
D) avoided Keynesian policies because of the threat of inflation.

Question

Quizplus · Accepted Answer

The federal government reduced taxes and increased government spending in an effort to stimulate economic activity and stop the recession. This is in line with Keynesian economic theories, which suggest that deficit spending during a recession can help boost demand and GDP.

In an Effort to Stop the U