According to the Traditional Keynesian School of Thought, Expansionary Fiscal

Multiple Choice

According to the traditional Keynesian school of thought, expansionary fiscal and monetary policy will:

A) increase interest rates, thereby shifting the investment function to the right.
B) reduce both consumption and investment spending, thereby eliminating all inflationary pressures.
C) reduce investment spending, thereby stabilizing the aggregate supply shocks.
D) stimulate both consumption and investment spending, thereby increasing aggregate demand.
E) shift the aggregate demand curve to the left, thereby reducing the unemployment rate.