Because the focus of monetary and fiscal policy tends on the average to be on the short run, it has most often been which of the following?
A)expansionary
B)contractionary
C)steady, actually almost stagnant
D)up and down like a smooth wave

Question

Quizplus · Accepted Answer

Monetary and fiscal policies are usually undertaken in response to short-term economic fluctuations such as recessions or inflation. Expansionary policies are typically used to stimulate economic growth during a downturn, while contractionary policies are implemented to cool down an overheating economy and combat inflation. Therefore, because the focus is mostly on the short run, the most common policy is expansionary.

Because the Focus of Monetary and Fiscal Policy Tends on the Average