In the 1960s and 1970s,the Primary Indicator of Monetary Policy

question 95

Multiple Choice

In the 1960s and 1970s,the primary indicator of monetary policy was

• A)movement of long-term interest rates.
• B)the growth rate of real government expenditures.
• C)the growth of the M1 money supply.
• D)changes in the nominal (dollar)size of budget deficits or surpluses.

---

Definitions:

Fixed Costs

Constant expenses that remain stable regardless of changes in the business activity level, playing a crucial role in budgeting and financial planning.

Variable Cost

Costs that change in proportion to the volume of goods or services produced.

Trucking Department

A division within a company that is responsible for the transportation and delivery of goods, typically using trucks.

Variable Costs

Expenses that change in proportion to the activity or volume of business, such as materials and labor costs.