Despite the Fact the Fiscal Policy Is Not Effective When

Multiple Choice

Despite the fact the fiscal policy is not effective when dealing with recession, Canadian government conducted an expansionary fiscal policy in response to the 2008-2009 financial crisis and recession. What might explain best the rationale for this policy?

A) Since the US did not conduct an expansionary fiscal policy, Canada had to do it.
B) Canada had a budget surplus and could afford to conduct an aggressive expansionary policy.
C) The muted response proved politically unpopular, and it was increasingly apparent that the recession was worldwide in scope, requiring a coordinated response internationally.
D) No other countries conducted an expansionary fiscal policy, so Canada had to do it.