Whenever Fiscal Policy Actions,such as Income Tax Cuts,are Utilized to Expand

Multiple Choice

Whenever fiscal policy actions,such as income tax cuts,are utilized to expand the economy,the Keynesians prefer

A) a contractionary monetary policy.
B) monetary policy to stay the same because of the liquidity trap.
C) accompanying decreases in the money supply that will cause the interest rate to rise and,thus,prevent the crowding out of investment.
D) accompanying increases in the money supply in order to prevent the interest rate from rising and,thus,prevent the crowding out of investment.
E) both b and/or d