Describe Three Limitations of Functional Analyses

question 1

Essay

Describe three limitations of functional analyses.

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Definitions:

Rate of Return

The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Monetary Policy

The process by which a country's central bank controls the supply of money, aiming to achieve macroeconomic goals like controlling inflation, consumption, growth, and liquidity.

Stabilize Economy

Efforts or policies designed to maintain economic stability by controlling inflation, reducing unemployment, and encouraging growth.

Government Debt

The total amount of money borrowed by the government of a country to fund its operations, which has not been repaid.