Question

Match each type of policy with the example that best fits its description

A. Monetary policy
B. Fiscal policy
C.Protectionist policy

1.The gov. limits the amount of European grain that can be sold in the United States
2.The gov. purchases a large amount of domestically grown grain
3. The gov. restricts the amount of money that can be loaned to farmers

Answer 1

Answer: 1. C

2. A

3. B

Explanation:

• Protectionism policy is referring to actions than can restrain international trade, in this case, it is the European grain that is sold in the US. They are improving activity in the economy that is important when it comes to work. If we are using this type of policy, we must be informed about quotas, tariffs, and standards.

• Fiscal policy is referring to spending and tax policies which can increase economic growth through government spending and tax policies which are influencing conditions that can improve employment or demand for goods. In this case, it is about a farmer's job. Besides this one, it could be any job that the government is supporting.
• Monetary policy is having a goal to have stability of domestic products and it can borrow short-term money. In this case, those are government purchases that could have domestic grown and the monetary policy is looking often for interest rate or targeting inflation.