Economist B Says All of the Following: the Economy Needs

Multiple Choice

Economist B says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap.Government should either raise its __________ or cut _________________.I believe the tax multiplier is larger than the government spending multiplier,so I suggest government ___________________.

A) taxes; spending; cut taxes
B) spending; taxes; cut taxes
C) taxes; spending; raise spending
D) spending; taxes; raise spending
E) none of the above