Increased Government Spending Will Not Cause Investments to Not Drop

Multiple Choice

Increased government spending will not cause investments to not drop as much if:

A) the Fed does not change the money supply when the government increases government spending.
B) the Fed increases the money supply at the same time the federal government increases government spending.
C) business firms become pessimistic about the future.
D) the Fed decreases the money supply at the same time the federal government increases government spending.