Suppose the United States is going into a recession. To prevent the recession from worsening, the United States could do all the following except asking:
A)Japan to adopt policies that reduce its trade surplus with the United States.
B)China to reduce trade barriers to U.S. exports.
C)Japan to adopt a more expansionary fiscal policy.
D)the European Union to adopt a more contractionary monetary policy.

Question

Quizplus · Accepted Answer

Asking the European Union to adopt a more contractionary monetary policy would likely worsen the recession by reducing economic activity further, not prevent it. Expansionary policies are generally preferred during a recession to stimulate growth.

Suppose the United States Is Going into a Recession