An increase in tax rates is an example of ________ policy, while the government influencing banks to lend more to consumers is an example of ________ policy.

Question

BlackTom AI · Accepted Answer

The question asks us to identify two types of policy: one related to government taxation and spending, and another related to influencing lending and borrowing behavior.
Option 1: GDP; GNP. This pair describes measures of national income and output, not policy tools. It does not fit the categories asked (types of policy).
Option 2: fiscal; monetary. The first blank is best filled by fiscal policy, which involves government spending and taxation decisions. The second blank aligns with monetary policy, which is conducted by a central bank to influence lending, money supply, and interest rates; specifically, encouraging banks to lend more to consumers is a classic monetary policy objective.
Option 3: monetary; fiscal. This swaps the correct associations and attributes monetary policy to the first blank (tax rate changes), which is inaccurate because tax changes are fiscal policy, not monetary.
Option 4: GNP; GDP. Like Option 1, these are measurement concepts, not policy instruments, so they do not answer the prompt about policy types.

An increase in tax rates is an example of policy, while the government influencing banks to lend more to consumers is an example of policy.

View Explanation

Log in for full answers

Similar Questions

If the economy is in a recession, an appropriate combination of monetary and fiscal policies might be to:

In 2003, government passed a substantial cut in income taxes. The central bank also lowered interest rates. How can these two actions be categorized?

A goal of monetary policy and fiscal policy is to[Fill in the blank]

If the economy is in a recession, an appropriate combination of monetary and fiscal policies might be to:

If the economy is in a recession, an appropriate combination of monetary and fiscal policies might be to:

如果经济陷入衰退，货币政策和财政政策的适当组合可能是：

Which of the following do most economists NOT agree on?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler