Question

In: Economics

If a country is trying to recover from a recent recession, it is unlikely their government...

If a country is trying to recover from a recent recession, it is unlikely their government officials will decide to ________ because it would ________.

lower interest rates; decrease aggregate demand

raise tax; decrease aggregate demand

raise money supply; increase aggregate demand

increase taxes; increase aggregate demand

Solutions

Expert Solution

"B"

They will be reluctant to increase the taxes in the market because it would decrease aggregate demand in the market.

'the answer is "B".

Rahul Sunny answered 2 years ago
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