Which of the Following Is the Monetary Policy Reaction When

Multiple Choice

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

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