One way the government can boost the economy out of a recession is:

A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.


Answer: B

Economics

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Autonomous consumption is consumer spending which is based on income levels

Indicate whether the statement is true or false

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When Javier's income increases by $5,000, he spends an additional $3,750 dollars. This implies that his marginal propensity to consume is 0.75

Indicate whether the statement is true or false

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In economics, the concept of active government intervention in the macroeconomy was first emphasized by

A. supply-side economists. B. rational expectation theorists. C. monetarists. D. John Maynard Keynes.

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