Advocates of stabilization policy argue that when there is a recession, the government should increase the money supply and increase government expenditures.

Question

Ashton Soliman · Accepted Answer

Final Answer : True, Explanation :  Advocates of stabilization policy believe that during a recession, the government should intervene to stabilize the economy. Increasing the money supply can lower interest rates and encourage investment and spending, while increasing government expenditures can directly stimulate demand, both of which can help counteract the effects of a recession.

Advocates of stabilization policy argue that when there is a recession, the government should increase the money supply and increase government expenditures.

Definitions

Learning Objectives

Learning Objectives

Related questions