Stable Money and Prices Are a Key Source of Economic

question 83

Multiple Choice

Stable money and prices are a key source of economic growth because

• A) they allow activist policymakers to fine tune the economy.
• B) uncertainty and instability in prices will attract investors and business decision makers.
• C) price instability increases capital formation.
• D) price stability reduces the risks that accompany investment and other long-term commitments.

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Definitions:

Slope

The measure of steepness or the degree of inclination of a line, representing the ratio of the vertical and horizontal changes between two points on the line.

Y-Intercept

The point at which a line or curve intersects the y-axis of a graph, representing the value of the dependent variable when the independent variable is zero.

Least Squares Regression

A statistical method used to determine the best-fitting line through a set of points by minimizing the sum of the squares of the vertical distances (residuals) of the points from the line.

Slope

In mathematics and statistics, the slope refers to the measure of the steepness or incline of a line, quantitively defined as the ratio of the vertical change to the horizontal change between two points on the line.