Mainstream Economists Contend That, as Stabilization Tools

question 80

Multiple Choice

Mainstream economists contend that, as stabilization tools,

• A) discretionary fiscal policy is effective, but discretionary monetary policy is not.
• B) discretionary monetary policy is effective, but discretionary fiscal policy is not.
• C) both discretionary fiscal policy and discretionary monetary policy can be effective if appropriately used.
• D) discretionary fiscal policy and discretionary monetary policy cause more instability than they cure.

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Definitions:

T-Distribution

A probability distribution that is used to estimate population parameters when the sample size is small and the population standard deviation is unknown.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used as a basis for comparing other normal distributions.

Finite Population Correction Factor

A statistical adjustment made to the standard error of a sample mean or proportion when sampling without replacement from a finite population.

Sample Size

The number of observations or data points collected from a subset of a larger population in a statistical study.