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Match each type of policy with the example that best fits its definition.


A.Protectionist policy

B.Fiscal policy

C.Monetary policy


1.The government goes into debt to buy a large number of vehicles for the military.

  1. The government limits the number of foreign cars that can be sold in the United States.
  2. The government decreases the intrest rate on loans charged to car companies.

Verified Answer :

The easiest policy to identify is the following one:
 
2. The government limits the number of foreign cars that can be sold in the United States. 
This is a protectionist policy - it directly deals with protecting the local market from the other markets.

Now,
3. The government decreases the interest rate on loans charged to car companies.

This is monetary policy: those are often targeting the interest rates.

which means that

 the fiscal policy would be represented by
1.The government goes into debt to buy a large number of vehicles for the military. 





if anyone has the other version its

Protectionist policy - a high tax on cars imported from other countries

Fiscal policy - reduced taxes on corporate profits

Monetary policy - increased interest rates on loans

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