Which policy is effective in the intermediate range?
A)monetary policy
B)fiscal policy
C)both policies
D)none of these

Question

Quizplus · Accepted Answer

Both monetary and fiscal policies are effective in the intermediate range. Monetary policy, managed by central banks, involves controlling the money supply and interest rates to influence economic activity. Fiscal policy, managed by the government, involves changing tax rates and government spending to influence economic activity. Both can be adjusted to address economic conditions in the intermediate term, affecting variables like inflation, unemployment, and GDP growth.

Which Policy Is Effective in the Intermediate Range