Policy Makers Should Use a Variety of Fiscal and Monetary

question 48

Multiple Choice

Policy makers should use a variety of fiscal and monetary policy measures to stabilize the economy since

• A)this will shorten any policy lags
• B)this will always maintain full employment
• C)this will eliminate multiplier uncertainty
• D)there is a chance that errors in estimating one multiplier will be offset by errors in estimating another
• E)none of the above

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Definitions:

Conception

The process of a sperm fertilizing an ovum, leading to the formation of a zygote and the beginning of pregnancy.

Forebrain

Evolutionarily the most recent addition to the brain; coordinates advanced cognitive functions such as thinking, planning, and language; contains the allocortex, neocortex, and basal ganglia.

Midbrain

Central part of the brain; contains neural circuits for hearing and seeing as well as for orienting movements.

Hindbrain

Evolutionarily the oldest part of the brain; contains the pons, medulla, reticular formation, and cerebellum, the structures that coordinate and control most voluntary and involuntary movements.