If the President and Congress agree to balance the budget during a recession, then the appropriate monetary policy is

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During a recession, if the President and Congress decide to balance the budget, which typically involves reducing government spending or increasing taxes, it can further slow down the economy. To counteract this contractionary fiscal policy and support economic activity, the appropriate monetary policy would be to increase the growth of the money supply. This can help lower interest rates, encourage borrowing and spending, and stimulate economic growth.

If the President and Congress Agree to Balance the Budget