The response of monetary policy to a change in fiscal policy is an example of a more general phenomenon: the use of _______________ to steady aggregate demand and, as a result, production and employment.
A)macroeconomic policies
B)active stabilization policies
C)financial policies
D)Research led policies

Question

Quizplus · Accepted Answer

The use of monetary policy as a response to fiscal policy is an example of an active stabilization policy, which is a type of macroeconomic policy that aims to stabilize aggregate demand and maintain production and employment levels. Financial policies and research-led policies are more specific categories within macroeconomic policies and are not necessarily related to stabilization efforts.

The Response of Monetary Policy to a Change in Fiscal