Economics · Fiscal Policy

If a government wants to boost economic growth and stimulate demand during a recession, which expansionary fiscal measure is it most likely to take?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Reduce public spending
2Increase public spending✓
3Implement strict trade barriers
4Increase taxes significantly

Correct answer

Increase public spending

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If a government wants to boost economic growth and stimulate demand during a recession, which expansionary fiscal measure is it most likely to take?

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If a government wants to boost economic growth and stimulate demand during a recession, which expansionary fiscal measure is it most likely to take?

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