If the Government Uses Fiscal Policy to Close a Recessionary

Multiple Choice

If the government uses fiscal policy to close a recessionary gap,government

A) expenditure must be increased by more than the gap because of the government expenditure multiplier.
B) taxes must be cut by more than the gap because of the tax multiplier.
C) expenditure can be increased by less than the gap because of the government expenditure multiplier.
D) taxes can be raised by less than the gap because of the tax multiplier.
E) taxes must be raised by more than the gap because of the tax multiplier.