Question

Point Label your point 'B'. Carefully follow the instructions above and only draw the required objects. The combination of fiscal and monetary policies pursued in the early 1990s as part of the Clinton-Greenspan policy mix differed from the Bush-Greenspan policy mix in 2001 in that O A. the early 90s goal was to achieve deficit reduction without causing a recession while the 2001 mix aimed to halt/soften an impending recession. O B. the early 90s mix used the two policies in the opposite direction while the 2001 mix had them in the same direction. O c. the early 90s mix combined fiscal contraction with monetary expansion while the 2001 mix coupled fiscal expansion with monetary expansion. OD. all of the above are accurate. O A and B only. Clear Al Click to select your answer and then click Check Answer. All parts showing MacBook Pro

Answer 1

Under the Clinton Greenspan Policy mix, both IS and LM curves shifted to the right. It means in the 1990s mix used the two policies in the same direction. Mix combined fiscal expansion and monetary expansion.

In the 1990s the policy mix result was a reduction in reduction in deficit without causing a recession (because IS shifts to left and LM shifts to right)

Under the Bush Greenspan Policy mix, the IS curve shifted to the left and LM curve shifted to the right. It means in 2001 mix used the two policies in the opposite direction. Mix combined fiscal contraction and monetary expansion.

In 2001 the policy mix aimed to halt an impending recession (because both IS and LM shifts to right)

Answer: Option(A)