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    Question

    Fill in the Blanks:

    ………………………… involves changing the interest rate and influencing the money supply. ……………….. involves the government changing tax rates and levels of government spending to influence aggregate demand in the economy.

    A Fiscal Policy, Fiscal Policy Correct Answer Incorrect Answer
    B Fiscal Policy, Monetary policy Correct Answer Incorrect Answer
    C Fiscal Policy, Economic Policy Correct Answer Incorrect Answer
    D Monetary Policy, Monetary policy Correct Answer Incorrect Answer
    E Monetary policy, Fiscal Policy Correct Answer Incorrect Answer

    Solution

    The correct answer is E

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