b. Why do businesses and individuals accept paper currency when they know that, unlike gold, the paper the currency is printed on is worth very little? The country has fallen into a recession and output has dropped. The government has decided to intervene and is considering the policies outlined below. i) Increase government spending by 5 million dollars or decrease taxes by 5 million dollars. ii) Lower interest rates by 2% a) The first policy decision is an example of what type of policy? b) The second policy decision is an example of what type of policy? c) Discuss why/when the first policy might be preferable as a means of increasing AD and why/when the second policy might be preferable as a means of increasing AD. Be sure to note the advantages and the disadvantages of each