Author Question: Does monetary policy require the accompaniment of fiscal policy to change total spending? A) No, ... (Read 222 times)

MirandaLo · **on:** Jun 29, 2018

Does monetary policy require the accompaniment of fiscal policy to change total spending?

A) No, because the Fed is an independent agency of the federal government.
B) Yes, because monetary policy can contract total spending but cannot by itself expand it.
C) Yes, because no policy is effective if it only changes nominal money values.
D) Yes, if the demand for money tends to change in about the same direction and amount whenever the supply changes.

Question 2

A graph cannot be used to show that two variables are unrelated.

Indicate whether the statement is true or false