Certify Teacher Practice Test 2025 – 400 Free Practice Questions to Pass the Exam

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What fiscal policy decision would likely help end a recession?

Increase in taxes

Decreased funding for infrastructure

Decrease in taxes and increased infrastructure funding

The choice associated with decreasing taxes and increasing infrastructure funding is likely to be effective in ending a recession due to its direct impact on stimulating economic activity. Lowering taxes puts more money in the hands of consumers and businesses, which can lead to increased spending and investment. This increase in demand can help drive economic growth, creating a positive ripple effect throughout the economy.

Simultaneously, increasing funding for infrastructure projects can also play a significant role. Such investments create jobs and improve public services, further stimulating economic activity. Enhanced infrastructure can lead to improved efficiency for businesses, which might also bolster their profitability and competitiveness.

Together, these two measures not only aim to boost immediate economic spending but also lay the groundwork for long-term economic growth and stability, making this combination of fiscal policy a robust approach to counteract the effects of a recession.

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Decrease in unemployment benefits

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