_____ Refers to Federal Reserve Decisions That Shape the Economy

question 33

Multiple Choice

_____ refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of cash.

• A) Fiscal policy
• B) Monetary policy
• C) Revenue policy
• D) Deficit policy

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Definitions:

Artificially Scarce Good

A product or service whose availability is restricted through patents, copyrights, or other legal means, rather than by the limits of physical scarcity.

Pigouvian Tax

A tax imposed on activities that generate negative externalities, intended to correct an inefficient market outcome by internalizing the external costs.

Efficient Level

A point at which resources are allocated in the most effective manner, maximizing output without wasting resources.

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it without permission.