Suppose an aggregate demand shock has led to a recession.The government decides to use either monetary policy or fiscal policy to deal with the recession.Which policy tends to be more effective in an open economy: monetary policy or fiscal policy? Explain your answer.

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The Answer of Suppose an aggregate demand shock has led to a recession.The government decides to use either monetary policy or fiscal policy to deal with the recession.Which policy tends to be more effective in an open economy: monetary policy or fiscal policy? Explain your answer.

Suppose an Aggregate Demand Shock Has Led to a Recession