Which of the Following Ideas Is Associated with Mainstream Economics

question 175

Multiple Choice

Which of the following ideas is associated with mainstream economics?

• A) Capitalist economies tend to be stable.
• B) Monetary policy rules are desirable.
• C) Fiscal policy is a useful stabilization tool.
• D) Crowding-out of investment makes fiscal policy ineffective.

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Definitions:

Trade

The trading of goods, services, or a combination of both among two or more entities.

Large Cities

Urban areas with a large population density and extensive systems for housing, transportation, sanitation, utilities, land use, and communication.

Day-to-Day Activities

The regular or routine actions that individuals undertake on a daily basis for personal or professional purposes.

Income

The financial gain obtained by an individual or entity from work, investment, or other sources.