When an Output Gap Exists, fiScal or Monetary Policy Should

question 20

True/False

When an output gap exists, fiscal or monetary policy should be neutral.

---

Definitions:

Asset Value

Asset value is the total value of a company's or individual's assets, calculated by summing the market value of all tangible and intangible items.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual and exchange-traded funds.

Investment Company

A trust or corporation that focuses on deploying the aggregated investments of individuals into financial securities.

Mutual Fund Assets

The total market value of all financial assets held by a mutual fund.