Suppose the Economy Is in a Recession

Multiple Choice

Suppose the economy is in a recession. A fiscal policy that would counteract contractionary pressures is a(n) :

A) decrease in government transfer payments
B) decrease in government transfer payments.
C) increase in government purchases of goods and services
D) increase in government purchases of goods and services.
E) increase in tax rates
F) increase in tax rates.
G) decrease in interest rates.
H) decrease in interest rates