For an economy to move out of a recession, people must . a. stop creating new jobs b. avoid investing in the stock market c. avoid spending money d. begin spending money again Please select the best answer from the choices provided

d. begin spending money again

Explanation:

Saving is seen to be detrimental to economic activity, as it weakens the potential demand for goods and services. Economic activity is depicted as a circular flow of money. Spending by one individual becomes part of the earnings of another individual, and vice versa.

To increase economic growth

Lower interest rates – reduce the cost of borrowing and increase consumer spending and investment.

Increased real wages – if nominal wages grow above inflation then consumers have more disposable to spend.

Higher global growth – leading to increased export spending.

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