Which of the Following Is the Fiscal Policy Reaction When

Multiple Choice

Which of the following is the fiscal policy reaction when a weaker GDP is expected?

A) If government policymakers expect weaker GDP, they proactively increase government expenditure to boost GDP.
B) If the Federal Reserve expects weaker GDP, it will proactively decrease interest rates to boost GDP.
C) If the Federal Reserve expects weaker GDP, it will proactively increase interest rates to boost GDP.
D) If government expenditure rises, then GDP will also rise.