Using fiscal and monetary policies to stabilize the business cycle has advantages and disadvantages. Which of the following fiscal and/or monetary policy is NOT paired correctly with its disadvantage?
implementing loose money policies alone may not be enough: monetary policy
higher interest rates tend to restrict growth in the economy: fiscal policy
time lags involved in the government responding to a problem and implementing a solution: fiscal policy
a tax cut during a boom period may cause inflation: fiscal policy

Question

Using fiscal and monetary policies to stabilize the business cycle has advantages and disadvantages. Which of the following fiscal and/or monetary policy is NOT paired correctly with its disadvantage?
implementing loose money policies alone may not be enough: monetary policy
higher interest rates tend to restrict growth in the economy: fiscal policy
time lags involved in the government responding to a problem and implementing a solution: fiscal policy
a tax cut during a boom period may cause inflation: fiscal policy

paki · Answer

what you guess here about the answer here...?

rane · Answer

This question belongs to Economics Group http://openstudy.com/study#/groups/Economics%20-%20Financial%20Markets

rane · Answer

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