Which of the following is likely to lead to a partial recovery of an economy after a recession?
A) A decrease in tax rates in the economy
B) A decrease in government spending in the economy
C) A decrease in money supply in the economy
D) An increase in the interest rate in the economy

Question

Quizplus · Accepted Answer

A decrease in tax rates can lead to an increase in disposable income and purchasing power, resulting in an increase in consumer spending and businesses investing more, which can boost the economy. However, it also depends on the specific circumstances of the economy, such as the level of government debt and the extent of the recession.

Which of the Following Is Likely to Lead to a Partial