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Spending increases demand and can encourage economic growth.

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14y ago

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How does the nations government choose which public goods and services to produce?

The nation's government choose which public goods and services to produce because its a command market which allow the government to make all the choices.


What role is government in capitalism?

They get to choose to control everything.


What can the federal government do to try to bring the economy out of recession?

the federal reserve would try to lower nominal interest rate (monetary policy), not part of govt. The federal govt. would stimulate spending, either by lowering taxes or pumping money into the economy and spending more.


One might argue the American History after 1900 has been dominated by the idea of reform whether it be reform of society the economy or the government Choose at least three major reform movements t?

Darwin's "Origin of the Species" with the "Monkey to Man" chart. Reforming a Christian nation into humanist thinking. It was pushed so hard that lies were told about Pilt Down Man, Nebraska Man, Lucy, etc. Reforming the economy was done after the Great Depression and an effort made to convince Americans that we would never have another Great Depression. However, the depression era regulations were lifted from the banking systems. Today, I would say the government - the donkey is blind and the elephant can't hear. Government has just about put us out of business in America. The people even debate if the government is for us. We sometimes wonder who they are working for.


What are the best public stocks to invest in during a recession?

The best way to invest in public stocks would be to know the history and which part of the market is in recession. Not all aspects of the market may fall drastically at the same time. if you have a computer crisis on a national or global level you would have a recession in the technology field. The best to invest in would most likely be a stock that has fallen below it's 200 days moving average (non - exponential.), this means that it will rebound once the recession is over, as long as it is a strong company (you would know by the chart and the stock's history.). Investing in a low priced stock or a stock that is most likely to come out of the recession strongly to the upside. Your Financial Adviser could help you choose which are the best for your circumstances.