When consumers are very reluctant to spend in a recessionary environment, the government's most effective strategy is to: A) increase spending through bond financing B) decrease income taxes C)...

When consumers are very reluctant to spend in a recessionary environment, the government's most effective strategy is to:

A) increase spending through bond financing

B) decrease income taxes

C) decrease corporate taxes

D) do nothing, let self correct

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Although some conservatives might disagree, the most likely answer to this question is A.

There are many conservatives who might say that any of B, C, or D would be better than A.  They might argue that a reduction in taxes would actually increase aggregate supply.  As taxes were reduced, people and corporations would have more incentive to work hard and make more money.  This...

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