If the Economy Were Slipping into a Recession, the Preferred

Multiple Choice

If the economy were slipping into a recession, the preferred fiscal and monetary policies would lead to:

A) an increase in taxes and a decrease in the interest rate.
B) a decrease in transfer payments and an increase in the interest rate.
C) an increase in transfer payments and a decrease in the interest rate.
D) an increase in government purchases and an increase in the interest rate.