Monetary policy is implemented to ease the up and down swings of business cycles,while fiscal policy is implemented to create swings when the cycle is stalled in an economic boom.
Level of Learning 2: Understanding of concepts and principles

Question

Quizplus · Accepted Answer

This statement is incorrect as fiscal policy is often implemented to mitigate the negative effects of economic downturns, not to create swings during economic booms. Monetary policy, on the other hand, is often used to regulate the economy during both boom and bust cycles.

Monetary Policy Is Implemented to Ease the Up and Down