The Two Types of Monetary Policy Are

question 116

Multiple Choice

The two types of monetary policy are

• A) monetary and fiscal.
• B) expansionary and contractionary.
• C) countercyclical and pro-cyclical.
• D) positive and negative.
• E) pro and con.

---

Definitions:

Special Causes

Unusual, not predictable factors in a process that can cause variations and are not part of the process itself.

Common Cause Variation

Variation that is inherent in a process over time, caused by factors that are consistently and predictably present.

Control Charts

Visual tools used in statistical process control to monitor how a process changes over time, highlighting variations outside of predefined bounds.

Special Cause Variation

A type of variation in a process, identified as being caused by specific identifiable factors, unlike common cause variation which is inherent to the process.