Economics 9708 · AS & A Level · Government macroeconomic policy objectives

Government macroeconomic policy objectives — practice question

Which set of policies is most likely to raise output?

  • Afiscal policy: decrease budget deficit; monetary policy: decrease interest rates
  • Bfiscal policy: decrease budget deficit; monetary policy: increase interest rates
  • Cfiscal policy: increase budget deficit; monetary policy: decrease interest rates
  • Dfiscal policy: increase budget deficit; monetary policy: increase interest rates

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