If the government sought to end a recession, which of the following would be an appropriate policy?

Question

Quizplus · Accepted Answer

Decreasing taxes can stimulate spending and investment, while increasing transfer payments can increase disposable income and therefore spending. This combination of policies would result in an overall increase in aggregate demand and could help end a recession. The other choices would likely have the opposite effect and could worsen the recession.

If the Government Sought to End a Recession, Which of the Following