The negative effects of a recession would be reduced by which fiscal policy decision? A. incurring a budget deficit which is use

The negative effects of a recession would be reduced by which fiscal policy decision?

A. incurring a budget deficit which is used to retire debt held by the public
B. incurring a budget surplus and allowing that surplus to accumulate as idle Treasury balances
C. incurring a budget surplus, which is used to retire debt held by commercial banks
D. incurring a budget deficit by borrowing from the public and increasing expenditures

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  1. Answer:

    The negative effects of a recession would be reduced by which fiscal policy decision?

    A. incurring a budget deficit which is used to retire debt held by the public

    B. incurring a budget surplus and allowing that surplus to accumulate as idle Treasury balances

    C. incurring a budget surplus, which is used to retire debt held by commercial banks

    D. incurring a budget deficit by borrowing from the public and increasing expenditures

    Step-by-step explanation:

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