If Policy Makers Wanted to Use Both Monetary and Fiscal

question 6

Multiple Choice

If policy makers wanted to use both monetary and fiscal policy to stimulate demand and reduce a high rate of unemployment, which of the following would be most appropriate?

• A) a larger budget deficit and the purchase of securities in the open market
• B) a government surplus and the sale of securities in the open market
• C) a larger government deficit and an increase in the discount rate
• D) a government surplus and a reduction in the discount rate

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Definitions:

Fecal Incontinence

The inability to control bowel movements, causing unintentional loss of stool from the rectum.

Long-Term Memory Losses

The inability to recall past events, information, or experiences that persists over a long period, often due to injury or disease affecting the brain.

Rapid Speech

A pattern of speaking at an unusually fast pace, which can sometimes indicate nervousness, excitement, or certain psychological conditions.

Trembling

Involuntary shaking or quivering movements, often resulting from fear, anxiety, or medical conditions.