Economist B Says All of the Following: Expansionary Fiscal Policy

Multiple Choice

Economist B says all of the following: Expansionary fiscal policy is needed to raise aggregate demand and remove the economy from a recessionary gap.The choice of fiscal policy measures is between more government spending and a ___________ in taxes.Since I am in favor of smaller government,I choose a __________________ in __________________.

A) rise; decrease; government spending
B) rise; cut; taxes
C) decrease; rise; government spending
D) decrease; cut; taxes
E) none of the above