"Leaning against the wind" is exemplified by a
A)tax cut when there is a recession.
B)decrease in the money supply when there is a recession.
C)decrease in government expenditures when there is a recession.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Leaning against the wind means taking action to counteract an economic trend. In the case of a recession, a tax cut would be an example of leaning against the wind because it would try to stimulate growth and counteract the contraction of the economy. Decreasing the money supply or government expenditures would have the opposite effect, exacerbating the recession. Therefore, only A would be an appropriate answer.

"Leaning Against the Wind" Is Exemplified by a