Economic Fine-Tuning Is the (Usually Frequent)use of

question 141

Multiple Choice

Economic fine-tuning is the (usually frequent) use of

• A) monetary policy that is based on a predetermined steady growth rate in the money supply to counteract even small undesirable movements in economic activity.
• B) only fiscal policy to counteract even small undesirable movements in economic activity.
• C) monetary and fiscal policies to counteract even small undesirable movements in economic activity.
• D) fiscal policy that both balances the budget and counteracts even small undesirable movements in economic activity.

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Definitions:

Compounded Semi-annually

Interest calculation method where interest is added to the principal twice a year, allowing the interest to grow faster than simple interest.

Savings Plan

A systematic approach to setting aside funds to reach financial goals.

Investments

Funds committed into various financial instruments or assets with the expectation of generating income or profit.

Compounded Monthly

Interest that is calculated on the principal and the accumulated interest every month.