Supporters of Using Government Expenditures to Respond to Recession

question 152

Multiple Choice

Supporters of using government expenditures to respond to recession

• A)argue that monetary policy should be used first. An increase in the money supply will reduce interest rates.
• B)argue that monetary policy should be used first. An increase in the money supply will raise interest rates.
• C)argue that monetary policy should be used only after fiscal policy has been used. An increase in the money supply will reduce interest rates.
• D)argue that monetary policy should be used only after fiscal policy has been used. An increase in the money supply will raise interest rates.

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