Question
Suppose that your country was experiencing a severe recession. Further suppose that you were in charge of designing a fiscal policy plan on behalf of
Suppose that your country was experiencing a severe recession.
Further suppose that you were in charge of designing a fiscal policy plan on behalf of your government to bring the country out of recession.
If you are a strong believer in free market (and therefore, in government's minimal interference in the economy), which fiscal policy would you preferably implement?
a- Decrees the required reserves ration to free up excess reserves for banks to lend.
b- Increase government spending.
c- Decrease Taxes
d- All of these are measures that would improve the economy of your country and satisfy your political views.
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