Fiscal & monetary policy

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Increasing government spending to stimulate a weak economy is an example of:

A.Contractionary fiscal policy

B.Expansionary fiscal policy

C.Monetary tightening

D.A trade embargo

Fiscal policy involves the government's use of:

A.Interest rates and money supply

B.Taxation and government spending

C.Exchange rates only

D.Bank reserve ratios

To combat high inflation, a central bank would typically:

A.Lower interest rates

B.Raise interest rates

C.Print more money

D.Cut taxes

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