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Page Ref: 945-946/563-564Learning Outcome: Macro-9: Discuss fundamental approaches to fiscal policy.18
85) Does expansionary fiscal policy directly increase the money supply? Isnʹt it true that thepresident and Congress fight recessions by spending more money?85)Page Ref: 946/564Learning Outcome: Macro-9: Discuss fundamental approaches to fiscal policy.86) The problem typically during a recession is not that there is too little money, but too littlespending. If the problem was too little money, what would be its cause? If the problemwas too little spending, what could be its cause?86)Page Ref: 946/564Learning Outcome: Macro-9: Discuss fundamental approaches to fiscal policy.87) How does expansionary monetary policy increase spending in the economy compared tohow expansionary fiscal policy increases spending in the economy?87)