Opponents of Using Policy to Stabilize the Economy Generally Believe

question 22

Multiple Choice

Opponents of using policy to stabilize the economy generally believe that

• A)neither fiscal nor monetary policy have much impact on aggregate demand.
• B)attempts to stabilize the economy decrease the magnitude of economic fluctuations.
• C)unemployment and inflation are not cause for much concern.
• D)economic conditions can easily change between the start of policy action and when it takes effect.

---

Definitions:

Annuity Due

A series of equal payments made at the beginning of consecutive periods over a fixed length of time.

Interest Rate

The cost incurred by a borrower from a lender for the use of assets, represented as a proportion of the principal.

Payments

Transactions or transfers of money from one party to another, often in exchange for goods or services.

Annuity

A series of payments of a fixed amount for a specified number of periods.