The Principle Underlying Fiscal Policy States That When Unemployment Is

The principle underlying fiscal policy states that when unemployment is rising and the economy is going into a recession, fiscal policy should:

A) stimulate economic activity by decreasing taxes.
B) curb economic activity by reducing government spending.
C) let the forces of supply and demand operate on their own.
D) employ a tight-money policy.
E) reduce the rate of growth in the amount of money in circulation.