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You are a policy maker, and you are authorized to use both fiscal policy (government spending and taxes) and monetary policy (autonomous tightening of monetary
You are a policy maker, and you are authorized to use both fiscal policy (government spending and taxes) and monetary policy (autonomous tightening of monetary policy and autonomous easing of monetary policy) to fix the economy. Would you comment on how fiscal policy and monetary policy influence consumers' consumption behavior and investors' investment behavior differently? Why? Explain. Which policy (fiscal policy or monetary policy) would lead to a higher effect on the economy? Why? Explain. If you use the combination of both fiscal policy and monetary policy, how would you combine them to fix the current economy? Why? Would you explain your reasons carefully
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