Reduced Macroeconomic Variability in the U

question 55

Multiple Choice

Reduced macroeconomic variability in the U.S.since 1981 has all of the following benefits except:

• A)improving market functioning.
• B)making business planning easier.
• C)reducing resources devoted to managing inflation risks.
• D)allowing the Fed to pursue accommodating policy.

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Definitions:

Birth Rate

The annual number of births per 1,000 people in a population.

Population

The total number of individuals or entities within a defined area or group at a specific time.

Per Annum

An annual rate or measurement, often used in the context of interest rates or financial growth rates.

Compounds Interest

Interest calculated on the initial principal as well as the accumulated interest of previous periods of a deposit or loan.