How Does Monetary Policy Provide a Possible Corrective During Economic

Multiple Choice

How does monetary policy provide a possible corrective during economic recessions?

A) It provides more consumer capital by instituting steep reductions in the marginal tax rate.
B) It increases the desirability of American goods on the international markets through a reduction of tariffs.
C) It injects additional money into the economy through a lowering of interest rates to counteract the contracting market.
D) It creates a vast amount of jobs for unemployed workers through deficit spending on public works projects.