In Which of the Following Cases Is Expansionary Fiscal Policy

Multiple Choice

In which of the following cases is expansionary fiscal policy LEAST effective in increasing output?

A) if wages adjust rapidly to maintain equilibrium in the labor market
B) if wages do not change much even when there is high unemployment
C) if it is combined with expansionary monetary policy
D) if we have a Keynesian AS-curve
E) if the Fed is trying hard to keep interest rates from rising