A Monetary Rule Would Make It Difficult to

question 65

Multiple Choice

A monetary rule would make it difficult to

• A) have stable monetary growth.
• B) prevent inflation.
• C) respond to unforeseen events.
• D) stabilize the price of gold.

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Definitions:

Human Wants

The desires and needs of individuals for goods, services, and other intangibles that lead to satisfaction.

Opportunity Cost

The toll taken for not picking the second highest preference when decisions are formulated.

Tax Cut

A reduction in the amount of taxes imposed by the government, which can affect individuals, corporations, or specific sectors.

State Expenditures

The total spending by state governments on various public services, infrastructure, education, and welfare programs.