Why would a government choose to spend more money than it collects in taxes during a recession or a depression?
AIt is not possible to raise taxes during a recession.
BDeficit spending decreases demand and lowers inflation.
CTax revenues will be made up after a depression.
D.Spending increases demand and can encourage economic growth.
AIt is not possible to raise taxes during a recession.
BDeficit spending decreases demand and lowers inflation.
CTax revenues will be made up after a depression.