If the economy were slipping into a recession the preferred

If the economy were slipping into a recession, the preferred fiscal and monetary policies would lead to: an increase in taxes and a decrease in the interest rate. a decrease in transfer payments and an increase in the interest rate. an increase in transfer payments and a decrease in the interest rate. None of the above is correct

Solution

An increase in transfer payment and a decrease in tye interest rate.

Both the measures will lead to increase in money supply in the economy which is needed at the time of recession.