Supporters of Using Government Expenditures to Respond to Recession

question 325

Multiple Choice

Supporters of using government expenditures to respond to recession

• A) argue that monetary policy should be used first. To respond to a recession the Fed would increase the money supply.
• B) argue that monetary policy should be used first. To respond to a recession the Fed would decrease the money supply.
• C) argue that monetary policy should be used only after fiscal policy has been used. To respond to a recession the Fed would increase the money supply.
• D) argue that monetary policy should be used only after fiscal policy has been used. To respond to a recession the Fed would decrease the money supply.

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