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Which fiscal policy would be used to end a recession?

A. Reduce taxes
B. Lower federal spending
C. Raise interest rates


Sagot :

Final answer:

An expansionary fiscal policy involving lowering taxes or increasing government spending can help end a recession.


Explanation:

To end a recession, an expansionary fiscal policy can be utilized. This can involve lowering taxes or increasing government spending to stimulate the economy, promote growth, and decrease unemployment. Both fiscal stimulus and monetary policy adjustments can help boost output and improve economic conditions during a recession.


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