Monetary and fiscal policies:Select one:a. can reduce the severity of economic busts.b. have been proven to be ineffective and a

Question

3 years ago

15

Monetary and fiscal policies:Select one:a. can reduce the severity of economic busts.b. have been proven to be ineffective and a

re no longer used during recessions.c. only work during times of rapid inflation.d. are tools used during economic booms but not economic busts.Clear my choice

Business

1 answer:

bearhunter [10] · Answer 1 · 2022-03-29T02:20:41+03:00

Answer:

The correct answer is letter "A": can reduce the severity of economic busts.

Explanation:

Fiscal and Monetary Policies provide the government and the Federal Reserve (Fed) with two powerful tools to regulate the economy. <em>Fiscal Policy</em> refers to the economic impact of a government's spending and taxing policies. <em>Monetary Policy</em>, which the Fed controls, can also slow or ignite the economy. Ultimately its goal is to create cash built-up in the banking system.