- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 4. Monetary Policy
- Subject 4. Interaction of Monetary and Fiscal Policy
CFA Practice Question
If the economy is in a recession, ______
B. fiscal policy will be more effective than monetary policy.
C. it's not clear which policy will be more effective.
A. monetary policy will be more effective than fiscal policy.
B. fiscal policy will be more effective than monetary policy.
C. it's not clear which policy will be more effective.
Correct Answer: C
It depends on lots of factors, such as fiscal policy stance and monetary conditions.
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