Monetary and Fiscal Policies

question 60

Multiple Choice

Monetary and fiscal policies:

• A)can reduce the severity of economic busts.(True Answer )Correct
• B)have always been well understood and ultimately led to the end of the Great Depression.
• C)when used properly, can end every recession.
• D)All of the answers are correct.

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Definitions:

Australian Dollar

The currency of Australia, used as the official legal tender in the country and its territories.

Euro

The official currency of the eurozone, which is a monetary union of 19 of the 27 European Union member states.

American Dollars

The currency of the United States, widely used as a benchmark and reserve currency around the world.

Exchange Rate Gain

A profit resulting from a favorable change in the exchange rate between two currencies.