The Major Advantages of Monetary Policy Include Its Flexibility, Speed

question 136

True/False

The major advantages of monetary policy include its flexibility, speed, and political palatability.

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Definitions:

Real Interest Rate

The interest rate that has been adjusted for inflation, showing the real cost of funds to the borrower and the real yield to the lender.

Social Security

A government program designed to provide financial assistance and support to people with inadequate or no income, primarily the elderly, disabled, and families with dependent children.

Inflation

The quickening in the standard cost evaluation for goods and services, wearing down the strength to purchase.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.