Monetary Policy Differs from Fiscal Policy in That

question 36

Multiple Choice

Monetary policy differs from fiscal policy in that

• A)it has to be exercised by the legislature.
• B)the policy goals are very different.
• C)it is a slower process than fiscal policy.
• D)it can be implemented more quickly than fiscal policy.
• E)None of these answers is correct.

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Definitions:

Very Elastic

Very elastic describes demand that significantly changes in response to small changes in price, indicating high sensitivity of consumers.

Total Revenue

The sum of all payments received by a company for its products or services, not accounting for any expenses.

More Elastic

A term describing demand that is highly responsive to changes in price.

Quantity Demanded

The specific amount of a good or service consumers are willing to buy at a given price during a specific period.