Some Economists Argue That

question 63

Multiple Choice

Some economists argue that

• A)monetary policy should actively be used to stabilize the economy.
• B)fiscal policy should actively be used to stabilize the economy.
• C)fiscal policy can be used to shift the AD curve.
• D)All of the above are correct.

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Definitions:

Exchange Rate

The conversion rate of one currency to another.

Weakens

Becomes less strong or potent; in economic terms, can refer to a currency's decrease in value relative to others.

€

The symbol for the Euro, the official currency of the Eurozone in the European Union.

Appreciates

Denotes the appreciation in an asset's value as time progresses.