Compared with fiscal policy and monetary policy

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Reference no: EM131425998

1. If the government increases taxes in response to an inflation, the government is engaging in what economists call:

a. monetary policy.

b. investment policy.

c. fiscal policy.

d. consumption policy.

2. Compared with fiscal policy, monetary policy is:

a. quicker and easier to implement.

b. slower and more cumbersome to implement

c. more dependent on Congressional action.

d. More likely to produce an offsetting net export effect.

Reference no: EM131425998

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