Multiple Choice
Which of the following was an argument for using fiscal policy in situations like the Great Recession?
A) Congress can act quickly.
B) The size of a recessionary gap may require the use of both fiscal and monetary policy.
C) Once the federal funds rate is reduced to zero, monetary policy is less effective.
D) all of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q60: The objective of the Fed and the
Q115: Which of the following was not a
Q117: Once the federal funds rate is reduced
Q121: Economists observed the following growth rates in
Q122: Scatter diagrams of money growth rates and
Q123: Which of the following policies would a
Q125: Monetarists maintain that<br>A)the best way to study
Q159: A major advantage of monetary policy over
Q173: The current debate about fiscal and monetary
Q216: President George W.Bush's tax cut in 2001