What is a key distinction between monetary policy and fiscal policy in economic management?A. Monetary policy involves government spending and taxation, while fiscal policy focuses on interestrates and money supply.B. Monetary policy is set by the central bank, while fiscal policy is determined by the government'sbudget decisions.C. Monetary policy primarily influences employment and economic growth, while fiscal policy mainlyaffects inflation.D. Monetary policy is a short-term strategy, while fiscal policy is a long-term approach to economicmanagement.
What is a key distinction between monetary policy and fiscal policy in economic management?A. Monetary policy involves government spending and taxation, while fiscal policy focuses on interestrates and money supply.B. Monetary policy is set by the central bank, while fiscal policy is determined by the government'sbudget decisions.C. Monetary policy primarily influences employment and economic growth, while fiscal policy mainlyaffects inflation.D. Monetary policy is a short-term strategy, while fiscal policy is a long-term approach to economicmanagement.
Chapter27: Issues In Macroeconomic Theory And Policy
Section: Chapter Questions
Problem 4P
Related questions
Question
What is a key distinction between
A. Monetary policy involves government spending and
rates and money supply.
B. Monetary policy is set by the central bank, while fiscal policy is determined by the government's
budget decisions.
C. Monetary policy primarily influences employment and
affects inflation.
D. Monetary policy is a short-term strategy, while fiscal policy is a long-term approach to economic
management.
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