What Is One of the Advantages of Monetary Policy Over

question 193

Multiple Choice

What is one of the advantages of monetary policy over fiscal policy?

• A)its control over the size of Federal budget deficits
• B)the quickness with which it can be used
• C)the opportunity for broad political influence
• D)its domination of major sectors of the economy

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Definitions:

Total Variable Cost

The sum of expenses that vary directly with the level of production, such as raw materials and direct labor.

Marginal Cost

The expenditure involved in the production of one extra unit of a product.

Marginal Cost

The sum required to produce an extra unit of a product or service.

Variable Input

An input in the production process that can be adjusted in the short run to change the level of output, such as labor hours or raw materials.