Unlike Monetary Policy, Fiscal Policy

question 59

Multiple Choice

Unlike monetary policy, fiscal policy:

• A) does not include taxation and government spending.
• B) is the tool of the Federal Reserve Bank, or the Fed in the United States.
• C) is initiated by the president or by Congress in the United States.
• D) consists of manipulations in the interest rates, banking rules, and the volume of currency in a country.

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Definitions:

Demand Fluctuates

Demand fluctuates refers to the constant variations in consumer desire for products or services, which can be influenced by factors like season, price, and trends.

Pollution Laws

Legislation and regulations designed to control or reduce the release of harmful substances into the environment.

Competitive Industry

An industry characterized by many firms, free entry and exit, and products that are similar but differentiated.

Cost Advantages

Economic benefits enjoyed by a company that can produce goods or services at a lower cost compared to its competitors, often due to greater efficiency or economies of scale.