Policy advisor Smith wants to recommend a fiscal policy that will expand the economy. He could recommend:
open-market purchases by the Federal Reserve. open-market sales by the Federal Reserve. a decrease in government spending. a decrease in taxes.
John believes that good economics is not always good politics, and when they differ, politics will win. Hence, if John lives in the U.S., it is reasonable for him to have:
more serious concerns about discretionary fiscal policy than monetary policy. more serious concerns about discretionary monetary policy than fiscal policy. equally serious concerns about both discretionary fiscal and monetary policy. no serious concerns about discretionary fiscal and monetary policy.