If Policy Makers Wanted to Use Both Monetary and Fiscal

Multiple Choice

If policy makers wanted to use both monetary and fiscal policy to stimulate demand and reduce a high rate of unemployment, which of the following would be most appropriate?

A) ​A larger budget deficit and the purchase of securities in the open market by the Fed
B) ​A government surplus and the sale of securities in the open market by the Fed
C) ​A larger government deficit and an increase in the discount rate
D) ​A larger government surplus and a reduction in the discount rate