Homework Answers
Option C is the correct answer for the above question
Because, economy is in recession mean country does not have liquid cash or money. At that time starting additional projects is not the correct thing.
It is A. a income tax would give family's less (DI) income that they can spend. therefore it would casue the reccession to continue. all the other tree options help the economy grow by putting money into the economy. Government spending would increase employment which in return would allow more people to spend which would help a ecomony getting out of a reccession.
Correct Answer (C.) This analysis is doubly important because infrastructure projects are attractive to politicians because of financial incentives. The huge construction sites created by infrastructure spending are a visible reminder to voters that the government is working to overcome the crisis. This means that interested citizens need to be aware of the strengths and weaknesses of infrastructure as a form of incentive, as politicians may reject it because of its strength as a political signal.
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