In What Way Are Monetary and Fiscal Policies Similar

question 18

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 somewhat ineffective when the economy suffers real shocks.
• C) They both involve some amount of borrowing from the public.
• D) Each of these answers is correct.

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Definitions:

Reasonable Period

An ambiguous span of time that is fair and appropriate under the circumstances, often used in contract and employment law.

Mirror Image Rule

A principle in contract law that requires acceptance to be on exactly the same terms as the offer to result in a contract.

Common Law

A body of law derived from judicial decisions and precedents rather than statutes, predominant in countries like the UK and the US.

Woodshed

Informally refers to the process of practicing or improving skills in private, often used in a musical context.