If firms were faced with greater uncertainty because of concern that oil prices might rise,they might decrease expenditures on capital.In response to this change,someone who advocated "lean against the wind" policies might advocate
A)decreasing the money supply.
B)increasing taxes.
C)increasing government expenditures.
D)All of the above

Question

Quizplus · Accepted Answer

"Lean against the wind" policies aim to counteract economic fluctuations. If firms reduce capital expenditures due to uncertainty, increasing government expenditures can stimulate demand and offset the potential economic slowdown.

If Firms Were Faced with Greater Uncertainty Because of Concern