Here is an excerpt from the August 3, 1991 New York Times article, "President is Sent Measure to Widen Jobless Benefits."Read the excerpt and answer the question.

Congress today sent President Bush a $5.8 billion measure to aid people who remain unemployed for more than half a year, a total of about three million Americans.But Mr. Bush is expected to keep the extended benefits from flowing, according to White House aides and Republican lawmakers. Mr. Bush would not commit himself at a news conference, but he warned against increasing the Federal budget deficit.

At his news conference Mr. Bush said, "The last thing we want to do is break the budget agreement and spend outside to increase the deficit." The President couched his answer with optimism about the economy and said the lower unemployment level for July was "very good news."

Consider the article excerpts and the data for the third quarter of 1991 (1991-3).Which of the following is the best analysis of this policy controversy?

a.The proposal was an increase in government purchases, which is contractionary fiscal policy.It could have reduced the unemployment rate, but would also have made the Federal budget balance more negative.

b.The proposal was an increase in government purchases, which is contractionary fiscal policy.It could have made the Federal budget balance less negative, but would have increased the unemployment rate.

c.The proposal was an increase in government purchases, which is expansionary fiscal policy.It could have made the Federal budget balance less negative, but would have increased the unemployment rate.

d.The proposal was an increase in transfer payments, which is expansionary fiscal policy.It could have reduced the unemployment rate, but would also have made the Federal budget balance more negative.