Macroeconomic policy consists of both monetary and fiscal policies. Monetary policy involves managing the money supply and interest rates by the central bank, while fiscal policy involves government spending and taxation. The goal of these policies is to stabilize the economy and promote growth.

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Macroeconomic Policy

Question 41

Multiple Choice

Macroeconomic policy

A) is an economic function of government that began in the 1960s.
B) attempts to stabilize the market system in the United States.
C) attempts to promote fair trade practices among business firms.
D) consists of monetary and fiscal policies.
E) deals with internalizing externalities.

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