Fiscal policy and monetary policy are economic stabilization policies designed to
A)prolong recessions.
B)prolong inflation.
C)stabilize prices.
D)decrease employment.

Question

Quizplus · Accepted Answer

Fiscal policy and monetary policy are both used to stabilize the economy and stabilize prices. Fiscal policy involves government spending and taxation, while monetary policy involves controlling the money supply and interest rates. These policies are designed to promote economic growth and stability, and to prevent or mitigate inflation and recession.

Fiscal Policy and Monetary Policy Are Economic Stabilization Policies Designed