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

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Definitions:

Mood Disorders

Psychological disorders characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Nightmares

Disturbing dreams that cause the dreamer to wake up feeling anxious and frightened.

Genes

Units of heredity made up of DNA. They act as instructions to make molecules called proteins, influencing individual traits that are inherited from parents.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems, and is involved in sleep and emotional activity.