Question

Someone criticizes the government for increasing interest rates but approving the increase in government spending. They are criticizing the government’s ____policy and praising the government ___ policy.

Answer 1

When a pressure group criticizes a  government for increasing interest rate but praise them for increase in government spending, then, they are criticizing the government’s fiscal policy and praising the government monetary policy.

What is a fiscal and monetary policy?

Basically, a fiscal policy means the method of using a spending and tax policies to influence economic conditions while  monetary policy means the general control of the quantity of money available in an economy

In conclusion, whan a pressure group criticizes a  government for increasing interest rate but praise them for increase in government spending, then, they are criticizing the government’s fiscal policy and praising the government monetary policy.

Read more about fiscal policy

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