The Reason That Fiscal Policy Is Ineffective During a Recession

Multiple Choice

The reason that fiscal policy is ineffective during a recession is that

A) an expansionary fiscal policy will lead to higher interest rates,appreciation of exchange rate,and a reduction in net exports.
B) an expansionary fiscal policy will lead to lower interest rates,depreciation of exchange rate,and an increase in net exports.
C) an expansionary fiscal policy will lead to lower interest rates,appreciation of exchange rate,and a reduction in net exports.
D) an expansionary fiscal policy will lead to higher interest rates,appreciation of exchange rate,and an increase in net exports.