Which of the following is a fiscal policy prescription for ending a recession?
A) Raise taxes to pay for greater transfer payments to stimulate the economy
B) Increase government expenditures to let the multiplier work
C) Raise interest rates to stimulate saving
D) Restrict exports to increase injections in the domestic economy

Question

Quizplus · Accepted Answer

Increasing government expenditures to let the multiplier work is a classic fiscal policy prescription for ending a recession. This involves the government increasing spending on goods and services, which can lead to an increase in demand and economic activity. This can also lead to job creation, which can further stimulate the economy.

Which of the Following Is a Fiscal Policy Prescription for Ending