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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Definitions:

Stability

The state or quality of being resistant to change, disruption, or displacement, often used in various scientific disciplines such as chemistry, physics, and engineering to describe systems or structures.

Fractures

Breaks or cracks within rock or Earth's surface caused by physical stress and strain.

Rock

A naturally occurring solid aggregate of minerals or mineraloids.

Tectonics

The branch of geology concerned with the structure and movement of the Earth's crust and large-scale processes affecting its layout.