Suppose the government increases the amount of money it spends. This is an example of which of these?

using fiscal policy to decrease inflation

using fiscal policy to stimulate the economy

using monetary policy to stimulate the economy

using monetary policy to slow down the economy

Question

Business

Puddles

23 October, 01:21

Suppose the government increases the amount of money it spends. This is an example of which of these?

using fiscal policy to decrease inflation

using fiscal policy to stimulate the economy

using monetary policy to stimulate the economy

using monetary policy to slow down the economy

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Answers (1)

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Puck · Answer 1

This is an example of using fiscal policy to stimulate the economy

Explanation:

Use of fiscal policy or in this case fiscal deficit even, is a strategy some economies use so that the flow of the money remains the same even when the economy nears slow down.

The concept is that the country will be able to retrieve all the money back once the slowdown is over but if it gets worse then there is a little chance of getting more money.

So in long term the deficit actually is profitable.

Suppose the government increases the amount of money it spends. This is an example of which of these?using fiscal policy to decrease inflationusing fiscal policy to stimulate the economyusing monetary policy to stimulate the economyusing monetary policy to slow down the economy

Suppose the government increases the amount of money it spends. This is an example of which of these?

using fiscal policy to decrease inflation

using fiscal policy to stimulate the economy

using monetary policy to stimulate the economy

using monetary policy to slow down the economy