Homework Help: economics

Posted by Colleen on Monday, December 4, 2006 at 8:26pm.

Which combination of fiscal policy actions would be most stimulative for an exonomy in a deep recession?
a) increase taxes and government spending
b) decrease taxes and government spending
c) increase taxes and decrease government spending
d)decrease taxes and increase government spending

Stimulative policies are 1) reducing taxes, and/or 2) increasing govt spending.

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