QUESTION 10 Suppose that the United States is heading into a recession (Aggregate Demand has fallen)....

Transcribed Image Text:

QUESTION 10 Suppose that the United States is heading into a recession (Aggregate Demand has fallen). What could the government do to shorten or cancel the recession? (select three (3) that apply) Cut taxes to encourage consumption spending Push down interest rates to stimulate investment Raise taxes to balance the government's budget Pass import quotas and tariffs to lower imports Sell more government bonds to reduce the money supply Raise interest rates to encourage national saving Purchase large quantities of goods and services QUESTION 10 Suppose that the United States is heading into a recession (Aggregate Demand has fallen). What could the government do to shorten or cancel the recession? (select three (3) that apply) Cut taxes to encourage consumption spending Push down interest rates to stimulate investment Raise taxes to balance the government's budget Pass import quotas and tariffs to lower imports Sell more government bonds to reduce the money supply Raise interest rates to encourage national saving Purchase large quantities of goods and services

Answer rating: 100% (QA)

Out of the options youve presented here are 3 actions that the government could take to shorten or c... View the full answer