Question

In applying fiscal policy Conservatives will normally seek to limit government and will be inclined to ________ taxes (T) during a recession to stimulate the economy..

Answer 1

Answer:

Decrease

Explanation:

Fiscal policy is an important policy tool which is used by the government to account for revenue and expenses. During a boom stage, when the economy is improving the government implements more taxes. Similarly, in a recession period, where economic growth is negative an expansionary discretionary fiscal policy is applied. In this type of fiscal policy, taxes and government expenses both are concentrated to remove the pressure.