166k views
3 votes
An appropriate fiscal policy response to a recessionary gap would be to decrease which of these?

the money supply
government spending
nominal interest rates
the personal income tax rate

2 Answers

5 votes

B is the Answer:

Explanation: Government Spending:)

User Chucky
by
6.1k points
5 votes

The correct answer is government spending

Explanation: Public expenditure is the set of expenditures made by public entities to fund public services rendered to society or to make investments.

User Qiaochu Yuan
by
5.5k points