Monetary Policy Could Be Enacted on Which of the Following

question 246

Multiple Choice

Monetary policy could be enacted on which of the following bases?
I. Instrument rule
II. Fiscal- related rule.
III. Targeting rule.

• A) I, II, and III
• B) I only
• C) I and II
• D) I and III

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Definitions:

Accounting Profit

The total revenue of a business minus the explicit costs of operating the business.

Implicit Costs

The opportunity costs associated with a company's use of resources that are not directly paid for or billed.

Implicit Cost

The opportunity costs that are not directly paid or incurred but represent the loss of alternative benefits when resources are used in a particular way.

Capital

A resource, such as equipment or buildings, used to produce goods and services.