In What Way Are Monetary and Fiscal Policies Similar

question 3

Multiple Choice

In what way are monetary and fiscal policies similar?

• A) They both target aggregate demand to overcome business fluctuations.
• B) They are both effective when the economy suffers from real shocks.
• C) Both involve a multiplier effect.
• D) Neither involves a lag.

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Definitions:

Psychological Disorders

Mental health conditions characterized by disruptions in thought, behavior, communication, or emotion that lead to significant distress or impaired functioning.

Insight Therapy

A type of psychotherapy focusing on increasing a patient's awareness of underlying motives and defenses to promote psychological healing.

Behavioral Therapy

A form of psychotherapy that focuses on changing undesired behaviors through reinforcement strategies and other techniques.

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including emotional highs (mania) and lows (depression).