When there is either too much or too little spending in the economy, there are actions the government can take to help resolve the imbalances. Which of the following is NOT an example of such government action?

Question

When there is either too much or too little spending in the economy, there are actions the government can take to help resolve the imbalances.   Which of the following is NOT an example of such government action?

Accepted Answer

Consumers and businesses are worried about both a recession and high inflation while the economy recovers from the pandemic.

Answer

During a recession the government decreases income taxes to increase disposable income.

Answer

The interest rate is adjusted up or down in order to discourage or encourage borrowing and spending by consumers.

Answer

Due to high inflation the government reduces its spending on infrastructure.

Crowdly

When there is either too much or too little spending in the economy, there are a...

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