Analysis of Macro Policy and Theory Has Resulted in Which

question 36

Multiple Choice

Analysis of macro policy and theory has resulted in which of the following views?

• A) There should be some self- restraint by policy makers in the use of fiscal or monetary policy.
• B) Economists know more these days to allow for more active policy fine tuning.
• C) A constitutional amendment is the only hope for constraining fiscal policy.
• D) Popular elections for the head of the central bank is the most effective way to constrain monetary policy.
• E) The head of the central bank should be appointed by the prime minister.

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Definitions:

Retained Earnings Statement

A financial report detailing the modifications in accumulated profits over a certain timeframe.

Prior Period Adjustments

Corrections of errors in financial statements of prior periods or adjustments for omitted transactions.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often with fixed dividends.

Common Stock

A form of equity stake that signifies ownership within a corporation, granting the owner the right to vote and a portion of the corporation's earnings via dividends.