Ask Question
29 March, 08:38

When the federal government cuts taxes and increases purchases to stimulate the economy during a period of recession, such actions are designed to be?

+5
Answers (1)
  1. J
    29 March, 09:00
    0
    They are reflationary fiscal policies.

    Policies that involve taxation and government spending are called fiscal policies, and when government spending increases or taxation decreases, this increases aggregate demand due to the increase in consumption by the public, which leads to these being called reflationary.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When the federal government cuts taxes and increases purchases to stimulate the economy during a period of recession, such actions are ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
Sign In
Ask Question