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The negative effects of a recession would be reduced by which fiscal policy decision?

A. incurring a budget deficit which is used to retire debt held by the public
B. incurring a budget surplus and allowing that surplus to accumulate as idle Treasury balances
C. incurring a budget surplus, which is used to retire debt held by commercial banks
D. incurring a budget deficit by borrowing from the public and increasing expenditures

Sagot :

Incurring a budget surplus and allowing that surplus to accumulate as idle Treasury balances. Then the correct option is B.

What is Recession?

A span of transitory negative growth marked by a drop in Income in four quarters.

The negative effects of a recession would be reduced by the fiscal policy decision will be

Incurring a budget surplus and allowing that surplus to accumulate as idle Treasury balances

Then the correct option is B.

More about the Recession link is given below.

https://brainly.com/question/18075358

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