Question 1 of 23
How does the government typically change fiscal policy to try to improve the
U.S. economy during a recession?
A. By lowering taxes on businesses and individuals
B. By increasing the amount of money in circulation
O O O
C. By decreasing the amount of money in circulation
D. By increasing taxes on businesses and individuals

Respuesta :

Answer: by lowering taxes on businesses and individuals

Explanation:

During a recession the government will intends to improve the U.S. economy by changing the fiscal policy by lowering taxes on businesses and individuals.

How does lowering taxes helps?

When a tax cuts policy is implemented during recession, it can help to boost the economy by putting more money into circulation.

Thus, the policy of tax cuts will be adopted as fiscal policy to improve the U.S. economy during recession.

Therefore, the Option A is correct.

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