Which of the following would most likely move the economy into a recession in the short term?
A) invention of a new product that most consumers want to buy
B) innovations in management that enhance worker productivity
C) the central bank printing less money than was anticipated
D) Congress passing a reduction in personal income tax rates

Question

Quizplus · Accepted Answer

The central bank printing less money than was anticipated would likely lead to a decrease in the money supply, making it harder for businesses and consumers to access credit and spend money, thereby leading to a decrease in economic activity and potentially triggering a recession. The other options, such as the invention of a new product or a reduction in personal income tax rates, would likely stimulate economic activity and growth, rather than cause a recession. Innovations in management could potentially lead to short term layoffs, but would likely enhance productivity and competitiveness in the long run.

Which of the Following Would Most Likely Move the Economy