In principle, the government could increase the money supply or increase government expenditures to try to offset the effects of a wave of pessimism about the future of the economy.

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Kevin Foster · Accepted Answer

Final Answer : True, Explanation :  Increasing the money supply or government expenditures are fiscal and monetary policy tools, respectively, that governments can use to stimulate economic activity and counteract pessimism about the economy's future.

In principle, the government could increase the money supply or increase government expenditures to try to offset the effects of a wave of pessimism about the future of the economy.

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