Supporters of Using Government Expenditures to Respond to Recession

Multiple Choice

Supporters of using government expenditures to respond to recession

A) argue that monetary policy should be used first. An increase in the money supply will reduce interest rates.
B) argue that monetary policy should be used first. An increase in the money supply will raise interest rates.
C) argue that monetary policy should be used only after fiscal policy has been used. An increase in the money supply will reduce interest rates.
D) argue that monetary policy should be used only after fiscal policy has been used. An increase in the money supply will raise interest rates.