Which answer choice represents a fiscal policy rather than a monetary policy?
Α lowering the money supply
the setting of interest rates
С
an increase in government spending
D
the establishment of reserve requirements

Question

11-11-2021
Social Studies

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Which answer choice represents a fiscal policy rather than a monetary policy?
Α lowering the money supply
the setting of interest rates
С
an increase in government spending
D
the establishment of reserve requirements

Respuesta :

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topeadeniran2 topeadeniran2 · Answer 1 · 2021-11-17T11:12:03+01:00

The option that represents a fiscal policy rather than a monetary policy is С. an increase in government spending.

Fiscal policy simply means the use of government spending and tax to influence the economy. This is done in order to influence aggregate demand, employment, inflation, etc.

An example of fiscal policy is the increase in government spending. Government can increase its spending in order to make more money available in the economy and thereby, increase the aggregate demand.

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Which answer choice represents a fiscal policy rather than a monetary policy? Α lowering the money supply the setting of interest rates С an increase in government spending D the establishment of reserve requirements

Respuesta :

Otras preguntas

Which answer choice represents a fiscal policy rather than a monetary policy?
Α lowering the money supply
the setting of interest rates
С
an increase in government spending
D
the establishment of reserve requirements