1. If the government increases taxes in response to an inflation, the government is engaging in what economists call:
a. monetary policy.
b. investment policy.
c. fiscal policy.
d. consumption policy.
2. Compared with fiscal policy, monetary policy is:
a. quicker and easier to implement.
b. slower and more cumbersome to implement
c. more dependent on Congressional action.
d. More likely to produce an offsetting net export effect.