Fiscal Policy Is More Effective Than Monetary Policy in Increasing

question 29

Multiple Choice

Fiscal policy is more effective than monetary policy in increasing aggregate demand when _____.

• A) the economy is in a boom
• B) inflation and unemployment levels are at very low levels
• C) the crowding out effect is strong
• D) interest rate changes have no effect on production and consumption

---

Definitions:

Emotional

Pertaining to feelings or the ability to experience and respond to different emotions.

Sleepwalking

A disorder occurring during deep sleep, leading individuals to walk or perform other complex behaviors while not fully awake.

REM Sleep

REM sleep, or rapid eye movement sleep, is a stage of sleep characterized by the rapid movement of the eyes, vivid dreaming, and increased brain activity, playing a critical role in emotional regulation and memory consolidation.

N3 Sleep

The stage of deep sleep that is difficult to awaken from, associated with the repair and restoration of the body.