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If government drops one million dollars from the sky is it a monetary or fiscal policy?
Wiki User
∙ 11y ago
Assuming the million dollars is money that was not already in circulation, this would be part of monetary policy. This is because it would be increasing the money supply. If, however, the money came from taxes and was a part of government spending, then it would be fiscal policy.
Wiki User
∙ 11y ago
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