Which Statement Is Incorrect

question 174

Multiple Choice

Which statement is incorrect?

• A) A monetary rule may not be appropriate in the case of a major economic shock.
• B) Monetary rules are based on the assumption that the economy will return to full employment on its own in the long run.
• C) If one believes that frequent changes in monetary policy can have destabilizing effects on the economy, then a monetary rule may be appropriate.
• D) Monetary rules assume that the Federal Reserve has perfect insight into the effects of monetary policy on the economy.

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Monthly Payroll

The total amount of wages paid by a business to its employees in one month.

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A business that provides services related to the processing, measurement, and communication of financial information about economic entities.

Salaries

Payments made to employees for their services, typically expressed as an annual sum and paid at regular intervals.

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