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Sublight2097 Sublight2097
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8 years ago
Does fiscal policy affect monetary policy?
A) No, because real output and income can and sometimes do move in the opposite direction from nominal money output and income.
B) Yes, because the Fed and the Treasury naturally tend to pursue similar goals.
C) Yes, because government deficits or surpluses affect the total demand for credit.
D) Yes, because the government usually prints new money to finance deficits and retires that money when it runs a surplus.
Textbook 
The Economic Way of Thinking

The Economic Way of Thinking


Edition: 13th
Authors:
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VincenzoDVincenzoD
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Sublight2097 Author
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#2
8 years ago
My mind was going in all different directions trying to figure this one out. Thanks so much.
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