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30) An appropriate fiscal policy for a severe recession is B) a decrease in tax rates. D) a decrease in government spending. A) appreciation of the dollar. C) an increase in interest rates. 31) A contractionary fiscal policy is shown as a A) rightward shift in the economy's aggregate demand curve. B) rightward shift in the economy's aggregate supply curve C) leftward shift in the economy's aggregate demand curve. D) movement along an existing aggregate demand curve. 32) A tax reduction of a specific amount will be more expansionary the A) smaller is the economy's MPC. B) smaller is the economy's multiplier. C) larger is the economy's MPC. D) less is the economy's built-in stability.
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