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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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