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Increasing government spending when the economy is in a recession is an example of: A)active monetary policy. B)active fiscal policy. C)passive...
1).Increasing government spending when the economy is in a recession is an example of: A)active monetary policy. B)active fiscal policy. C)passive monetary policy. D)passive fiscal policy.2).Keeping the money supply constant over business cycle is the example of:A)active monetary policy.B)active fiscal policy.C)passive monetary policy.D)passive fiscal policy3).Central-bank independence refers to: A) whether central banks pursue monetary policy by rules or discretion. B) the situation that occurs when the inside lag of monetary policy is not related to the outside lag. C) the extent to which automatic stabilizers are relied on to cushion economic volatility. D) the degree of separation between central-bank decision-making and political influence.
