QUESTION IMAGE
Question
which of these would congress look to do during a recession, as it pertains to fiscal policy
raise government spending
print more money
raise taxes
decrease the discount rate
Fiscal policy involves Congress's use of government spending and taxation. During a recession, expansionary fiscal policy is used to stimulate the economy. Raising government spending injects money into the economy, boosting demand. Printing money and adjusting the discount rate are monetary policy actions handled by the Federal Reserve, not Congress. Raising taxes is contractionary fiscal policy, which would worsen a recession.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
A. Raise government spending