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Suppose the government increases the amount of money it spends. This is an example of which of these? A) using fiscal policy to decrease inflation B) using fiscal policy to stimulate the economy C) using monetary policy to stimulate the economy D) using monetary policy to slow down the economy

Respuesta :

NickMagnus

Answer:

C) using monetary policy to stimulate the economy

Explanation:

When the government increases the amount of money it spends, this injects more money into the local economy. When this happens, prices rise and inflation occurs.

Monetary policies are about how does the government spends money but fiscal policies are about taxes, thus it is about government incomes.

GuilhermeSouzaS

Answer:

Your correct answer is C) using monetary policy to stimulate the economy

Explanation:

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