What type of policy is made up of fiscal and monetary policy?
A) Trade
B) Employment
C) Stabilization
D) Tax
E) Foreign

Question

Quizplus · Accepted Answer

Stabilization policy is made up of both fiscal and monetary policy. Fiscal policy refers to changes in government spending and taxation to influence the economy, while monetary policy refers to changes in interest rates and the money supply by the central bank. The aim of stabilization policy is to stabilize the economy, particularly with regard to fluctuations in employment and economic growth. Trade, employment, tax, and foreign policies may also impact the economy, but they are not the same as stabilization policy.

What Type of Policy Is Made Up of Fiscal and Monetary