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leonid [27]
3 years ago
15

Under what scenario could fiscal policy make a recession even worse?

Business
1 answer:
mr Goodwill [35]3 years ago
6 0

Answer:

The correct answer is letter "A": If tax cuts are not evenly distributed across income groups.

Explanation:

Fiscal policy refers to the combined governmental decisions regarding a country's taxing and spending. The term fiscal policy is associated with British economist John Maynard Keynes (<em>1883-1946</em>) who believed governments should influence macroeconomic productivity levels. Though, it could be a trap if it is <em>not allocated correctly among different income groups</em>. Economies such as Brazil, for instance, have allocated higher taxes for low-income people creating <em>economic disparity</em>.

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