If the economy were encountering a serve recession, proper monetary and fiscal policies would call for:

A) selling government securities, raising the reserve ratio, lowering the discount rate, and a budgetary surplus

B) buying government securities, reducing the reserve ratio, reducing the discount rate, and a budgetary deficit

C) buying government securities, raising the reserve ratio, raising the discount rate, and a budgetary surplus

D) buying government securities, reducing the reserve ratio, raising the discount rate, and a budgetary deficit.

B