Digital SAT Reading and Writing Practice Question #652

Text 1 During an economic recession characterized by a liquidity trap, consumer spending plummets and private investment stagnates. In such scenarios, classical market self-correction mechanisms fail, as panicked hoarding of cash renders lowered interest rates ineffective. It is therefore imperative that the central government steps in to enact aggressive deficit spending. By artificially stimulating aggregate demand through public works and social safety nets, the government can bridge the gap in private consumption and shock the economy back into a state of equilibrium. Text 2 Economic downturns, though painful, are an organic and necessary corrective phase in the business cycle. Recessions are typically the result of prior artificial credit expansion, which encourages rampant malinvestment in unsustainable sectors. When the market inevitably realizes these investments are unprofitable, a liquidation phase must occur to reallocate capital to its proper, efficient uses. Intervening during this phase prevents the necessary clearing out of bad debt and artificially props up failing enterprises, thereby ensuring that the structural imbalances plaguing the economy are never truly resolved. Based on the texts, how would the author of Text 2 most likely respond to the policy recommendation made in Text 1?