Question

To positively stimulate an economy using fiscal policy, government spending should ______, and taxes should ______.

-fall; rise
-rise; rise
-fall; fall
-rise; fall

Answer 1

To positively stimulate an economy using fiscal policy, government spending should fall, and taxes should rise.

Step-by-step explanation:

The answer to your question is fall; rise. To positively stimulate an economy using fiscal policy, government spending should fall to reduce the burden on the government and free up funds for private investment, while taxes should rise to generate more revenue for the government to be able to finance its operations and potentially pay down debt.