Question:

Help! How would the federal government use the following discretionary, monetary and other tools......?

by  |  earlier

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to fight a recession?

a. perosnal income taxes

b. investment tax credit for businesses

c. tarriffs on imported goods

d. the money supply

e. interest rates

Thank you very much!

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2 ANSWERS


  1. D and E.

    E is first. if the inflation monster refuses to list, you deploy (D).

    Because it is impossible to inflate anything if the money doesn't exist.


  2. a) lower it to encourage consumption

    b) raise it to encourage investment

    c) raise it to encourage domestic production

    d) increase it to encourage spending

    e) lower to encourage investment and other borrowing

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