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31 December, 11:02

Why would a government choose to spend more money than it collects in taxes during a recession or a depression?

A. It is not possible to raise taxes during a recession.

B. Deficit spending decreases demand and lowers inflation.

C. Tax revenues will be made up after a depression.

D. Spending increases demand and can encourage economic growth.

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  1. 31 December, 11:03
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    Spending increases demand and can encourage economic growth.
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