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Why would a government choose to spend more money than it collects in taxes during a recession or a depression?

A. It is not possible to raise taxes during a recession.
B. Deficit spending decreases demand and lowers inflation.
C. Tax revenues will be made up after a depression.
D.Spending increases demand and can encourage economic growth.

1 Answer

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Spending increases demand and can encourage economic growth.
User EmilMachine
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