36 35 Currently, the real GDP declining, the inflation rate is 1%, and the The actions of the FED that control and unemployment rate is 8.9%? regulate the amount of money in the Part A economy are referred to as What is the current state of the (1 Point) economy? Part B Give one monetary and one fiscal O fiscal policy. policy solution to fix the current state of the economy. monetary policy. (3 Points) O international trade. Enter your answer O opportunity costs. 34 33 You hear another student say: "Fiscal policy is easy to understand, all you Monetary policy is defined as the have to know is what is happening with (1 Point) current tax rates!" This student is (1 Point) O taxing and spending decisions of the United States Government. O correct, that is the definition of fiscal policy. O buying and selling of currency in partially correct; he needs to include foreign exchange markets. government spending decisions as well. O interaction of buyers and sellers in the market place. O incorrect, he is describing monetary policy. decisions of the Federal Reserve partially correct; he needs to include System that determine the money O open market operations as well. supply