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      Question

      Fill in the Blanks:

      >………………………… involves changing the interest rate and influencing the money supply. ……………….. involves the government changing tax rates and levels of government spending to influence aggregate demand in the economy.
      A Fiscal Policy, Fiscal Policy Correct Answer Incorrect Answer
      B Fiscal Policy, Monetary policy Correct Answer Incorrect Answer
      C Fiscal Policy, Economic Policy Correct Answer Incorrect Answer
      D Monetary Policy, Monetary policy Correct Answer Incorrect Answer
      E Monetary policy, Fiscal Policy Correct Answer Incorrect Answer

      Solution

      The correct answer is E

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