Which answer choice represents a fiscal policy rather than a monetary policy?

1 answer:

6 0

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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