The Fundamental Objective of Monetary Policy Is to Assist the Economy

question 186

Multiple Choice

The fundamental objective of monetary policy is to assist the economy in achieving

• A)a rapid pace of economic growth.
• B)a money supply that is based on the gold standard.
• C)a full-employment, noninflationary level of total output.
• D)a balanced-budget consistent with full employment.

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Definitions:

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments through calculating the rate of return where the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.

Payback Period

A rephrased definition: The duration needed to recover the initial expenditure on an investment through the cash flows it generates.

AAR

Average annual return, indicating the mean yearly profit or loss generated by an investment over a specified period.