Assume that aggregate demand in the economy is deficient, causing excessive unemployment

In looking at this question, one would think that "C" is the best answer of the group because it talks about creating more jobs for unemployed workers. I can argue that E is best answer in which all of these actions will support fiscal policy by increasing demand, and I will provide you a defense as to why.

A. A reduction in federal taxes provides more disposal income to spend for those not affected by unemployment.

B. Same reason as A, more disposable income to families with dependents.

C. Not only are jobs created with the construction of 8,000 school, but other areas benefit by creating a demand to those that produce raw building materials, Building supply companies may have to ramp up with workers to meet this new demand to produce raw construction materials.

D. This may be the weakest of the list, but still has a positive affect by farmers gaining additional governmental funding with sole purpose for better environment conservation efforts. This could be equipment and materials to replant forests or help with water conservation by reducing pollution from fertilizer runoffs.