What might offset the effects of a decline in the value of financial assets, such as stocks, on consumption and the economy?
A) increasing government spending
B) decreasing the money supply
C) increasing taxes
D) decreasing the government debt

Question

Quizplus · Accepted Answer

Increasing government spending can offset the effects of a decline in the value of financial assets by providing a stimulus to the economy. This can encourage consumers to continue spending and investing despite the decrease in the value of assets.

What Might Offset the Effects of a Decline in the Value