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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Definitions:

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Blame-The-Victim Dynamic

A social phenomenon where the victim of a crime or wrongdoing is held responsible for the harm that befell them, often reflecting societal prejudices.

Bystander Effect

The tendency for any given bystander to be less likely to give aid if other bystanders are present.

Deindividuation

A psychological state where individuals lose their self-awareness and sense of individuality in groups, often leading to uninhibited and sometimes antisocial behavior.