Monetary and fiscal policy changes can cause business cycles by:

CA Foundation · Business Economics · MTP · May 2026
Monetary and fiscal policy changes can cause business cycles by:
(A) A. Eliminating investment risk
(B) B. Altering aggregate demand
(C) C. Fixing exchange rates
(D) D. Standardising prices

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Altering aggregate demand

Topics: Business Cycles

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