Question

Fiscal policies are actions taken by the government to influence the economy through taxing or spending. To assist the economy to come out of a recession, Congress can pursue a fiscal policy that __________. decreases spending raises taxes lowers taxes increases interest rates

Answer 1

Fiscal policies are actions taken by the government to influence the economy through taxing or spending. To assist the economy to come out of a recession, Congress can pursue a fiscal policy that lowers taxes. Option C is correct.

Fiscal policy refers to the utilization of government spending and tax policies implemented in order to boost the economy of a country and the demand for goods and services, employment, inflation and economic growth.

Answer 2

To assist the economy to come out of a recession, Congress can pursue a fiscal policy that lowers taxes and increases spending, which is usually the go-to move for Congress.