To use fiscal expansion to fight a recession without discouraging investment,we must have ________ monetary policy and ________ fiscal policy
A)tight;easy
B)tight;tight
C)easy;easy
D)easy;tight

Question

Quizplus · Accepted Answer

To combat a recession, fiscal expansion (increased government spending or tax cuts) should be paired with easy monetary policy (lower interest rates) to encourage investment and spending.

To Use Fiscal Expansion to Fight a Recession Without Discouraging