Multiple Choice
Which of the following was an argument for using fiscal policy in situations like the Great Recession?
A) Congress can act quickly.
B) The size of a recessionary gap may require the use of both fiscal policy and monetary policy.
C) Once the federal funds rate is reduced to zero, monetary policy is less effective.
D) All of these responses are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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