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If the country is in a recession, the government can __________ to help bring the economy back to its original level.

A) increase the money supply
B) create more government jobs
C) increase spending OR decrease taxes
D) decrease spending OR increase taxes

1 Answer

2 votes
I believe the correct answer from the choices listed above is option C. If the country is in a recession, the government can increase spending or decrease taxes to help bring the economy back to its original level. An expansionary fiscal policy can be done. Hope this answers the question.
User Lxvs
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