Which of the Following Statements About the Effectiveness of the Fiscal

Multiple Choice

Which of the following statements about the effectiveness of the fiscal and the monetary policies in response to a recession in a small open economy is true?

A) In recession,fiscal policy is ineffective,but monetary policy is effective.
B) In recession,fiscal policy is effective,but monetary policy is ineffective.
C) In recession,both fiscal and monetary policies are effective.
D) In recession,both fiscal and monetary policies are ineffective.