Which of the Following Do Opponents of Using Policy to Stabilize

question 95

Multiple Choice

Which of the following do opponents of using policy to stabilize the economy generally believe?

• A)that neither fiscal nor monetary policy have much impact on aggregate demand
• B)that attempts to stabilize the economy can increase the magnitude of economic fluctuations
• C)that unemployment and inflation are not cause for much concern
• D)that unemployment is a cause for concern, but inflation is not.

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Definitions:

Zero Growth Stock

Zero growth stock refers to shares in a company that is expected to experience neither growth nor decline in its dividends or earnings in the foreseeable future.

Required Rate

The minimum return an investor is willing to accept when investing in a project, taking into account the risk level of the investment.

Annual Dividend

The total amount of money paid by a company to its shareholders in the form of dividends over a year.

Gross Domestic Product

A measure of the economic output of a country, calculated as the total value of all goods and services produced within the country's borders in a specific time period.