Compared to Monetary Policy, Fiscal Policy Leads to

question 21

Multiple Choice

Compared to monetary policy, fiscal policy leads to

• A) more stable prices.
• B) larger changes in output.
• C) more efficient outcomes.
• D) the price level fluctuates more in the short run.
• E) more private spending relative to public.

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Definitions:

Significant Risk

The potential for a substantial negative outcome, affecting health, safety, or the environment.

Shareholders Votes

The rights of shareholders to vote on corporate matters, such as electing directors or approving policies, typically based on the number of shares they own.

Trust Holdings

Assets held in a trust by one party for the benefit of another, including real estate, stocks, bonds, and other investments.

Tax Rate

The percentage at which an individual or entity is taxed on their income or property.