6. Stabilization policies can best be described as policies that:

Question

A. attempt to eliminate recession and/or inflation in the economy.

B. use changes in government spending to promote an equitable income distribution.

C. use changes in the money supply to lower income tax returns.

D. eliminate poverty through the adoption of work incentives.

I'm stuck between A and B.

Answer 1

A is the best answer.

Stabilization doesn't mean evening up the the distribution of income.