What Is the Difference Between the Effects of Fiscal Policy

question 39

Multiple Choice

What is the difference between the effects of fiscal policy and the effects of monetary policy?

• A) Monetary policy can affect long-term growth while fiscal policy cannot.
• B) Fiscal policy can affect the short-term price level while monetary policy cannot.
• C) Fiscal policy can affect long-term growth while monetary policy cannot.
• D) Monetary policy can affect the short-term level of output while fiscal policy cannot.

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