During a recession, what must happen to interest rates to spur economic growth? a) drop b) increase c) remain stable d) increase and decrease

A). Drop.

Explanation:

Controlling the interest rates is one of the vital element of government's fiscal policy that it applies to stabilize the economy during recession or inflation.

As per the question, the economic rates must be 'dropped or lowered' during a recession in order to increase the supply/flow of money in the market that would comprehend higher disposable income and improved economic activities that would assist in bringing the economy to the equilibrium.

What actually happens during a recession is that due to increased tax rates people are left with no or very little money to spend due to lack of work and economic activities that leads the economy towards recession. In order to control this, the government lowers tax rate(as a part of its fiscal policy) to increase investment and work opportunities for people that would comprehend the flow of money in the market and stabilize the economy. Thus, option A is the correct answer.

for many centuries there were important factors which the economies of the muslim empires developed increasingly. they applied economic procedures in production, investment, finance, taxation and property. they used to tax certain goods (for example: harvest), they charged interest on money lent, they signed contracts with merchants; they relied on a common currency, and they used checks as well as promissory notes. with the money collected by means of taxation, the government provided the needy with an income. in addition, trading networks covered huge distances, so far regions started to have contact and exchange goods. this trade network covered areas of asia, africa and europe.