Combinations of monetary and fiscal policy actions

Reference no: EM13698892

1) If the economy was experiencing a severe recession, which of the following combinations of monetary and fiscal policy actions would be most appropriate?

a. a decrease in the reserve requirement coupled with an increase in taxes

b. the sale of government securities by the Fed coupled with an increase in the level of government spending.

c. the purchase of government securities by the Fed coupled with a decrease in the level of government spending.

d. the purchase of government securities by the Fed coupled with a tax reduction

e. an increase in the reserve requirement coupled with a tax reduction

f. the purchase of government securities by the Fed coupled with a tax increase

Reference no: EM13698892

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