If financial turmoil overseas reduces U.S.net exports,then those in favor of "lean against the wind policies" would advocate
A)decreasing the money supply and cutting taxes.
B)decreasing the money supply and raising taxes.
C)increasing the money supply and cutting taxes.
D)increasing the money supply and raising taxes.

Question

Quizplus · Accepted Answer

"Lean against the wind" policies aim to counteract economic fluctuations. If U.S. net exports decrease due to financial turmoil overseas, it would likely slow down the economy. To counteract this, increasing the money supply and cutting taxes would stimulate economic activity by encouraging spending and investment.

If Financial Turmoil Overseas Reduces U