What policies can the government utilize to help stabilize the economy?
A)Price stabilization policy
B)Monetary policy
C)Fiscal policy
D)b and c
E)a, b, and c

Question

Quizplus · Accepted Answer

Both monetary policy and fiscal policy can be utilized by the government to help stabilize the economy. Monetary policy involves actions taken by the central bank to control money supply and interest rates. Fiscal policy involves decisions made by the government regarding spending and taxation. By implementing these policies, the government can influence economic growth, inflation rates, and unemployment levels. Price stabilization policy, on the other hand, is a specific type of policy aimed at stabilizing the prices of specific goods or services, and is not as broad or effective as monetary and fiscal policies. Therefore, the best choice is D.

What Policies Can the Government Utilize to Help Stabilize the Economy