What is the difference between fiscal policy and monetary policy?
What will be an ideal response?
Fiscal policy involves changes in federal taxes and purchases and is implemented by Congress and the President. Monetary policy involves changes in the money supply and interest rates and is implemented by the Federal Reserve. Both are intended to achieve macroeconomic objectives.
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When government spending exceeds government revenues during a given period of time
A) the national debt must be decreasing. B) a budget surplus exists. C) Congress is obliged to raise taxes. D) a budget deficit exists.
If productive efficiency characterizes a market
A) the marginal cost of production is minimized. B) the output is being produced at the lowest possible cost. C) firms use the best technology available to produce the good. D) firms produce the goods that consumers desire most.