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Of the following, which are valid Monetary Policy tools to stimulate the economy during a recession?
Of the following, which are valid Monetary Policy tools to stimulate the economy during a recession?
i. Lower the federal funds rate
ii. Increase federal spending on infrastructure
iii. Cut federal income tax rates
a. (i) and (ii) but not (iii)
b. (ii) and (iii) but not (i)
c. (i) and (iii) but not (ii)
d. All three: (i),(ii) and (iii)
e. (i) only
f. (ii) only
g. (iii) only
h. None of these are appropriate fiscal policy tools
