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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