Sometimes, the government and the Federal Reserve pursue conflicting goals. For example, the government may choose to carry out _____ to encourage economic growth. But the Federal Reserve may carry out _____ to reduce inflation.

expansionary monetary policy, contractionary fiscal policy
expansionary fiscal policy, contractionary monetary policy
contractionary fiscal policy, expansionary fiscal policy

Question

Sometimes, the government and the Federal Reserve pursue conflicting goals. For example, the government may choose to carry out _____ to encourage economic growth. But the Federal Reserve may carry out _____ to reduce inflation.

expansionary monetary policy, contractionary fiscal policy
expansionary fiscal policy, contractionary monetary policy
contractionary fiscal policy, expansionary fiscal policy

anonymous · Answer

@Robertparker