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.
Correct Answer:

Verified
Correct Answer:
Verified
Q11: Which statement do opponents of active stabilization
Q21: The economy is in long-run equilibrium when
Q25: Which of the following shifts aggregate demand
Q35: In principle,the government could increase the money
Q42: Canada is a small open economy with
Q76: According to liquidity-preference theory, why is the
Q115: According to liquidity-preference theory, how does a
Q117: Suppose that there are no crowding-out effects
Q118: Which of the following best defines the
Q124: If there is crowding out, which of