In an economy the unemployment rate is 10 percent and the inflation r – McqOptions

MCQOPTIONS

1.	In an economy the unemployment rate is 10 percent and the inflation rate is 1 percent. An appropriate fiscal policy in this phase of the business cycle would be to ?
A.	increase government spending
B.	increase income taxes
C.	decrease transfer payments
D.	decrease the money supply
Answer» B. increase income taxes

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