An Advantage Monetary Policy Has Over Fiscal Policy Is That

question 116

Multiple Choice

An advantage monetary policy has over fiscal policy is that monetary policy

• A)can be quickly changed and implemented.
• B)is coordinated with fiscal policy.
• C)is approved by the president of the United States.
• D)affects consumption expenditure and investment without impacting international trade.
• E)has no multiplier effects.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and to provide profit to the company.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.

Variable Costs

Expenditures that adjust based on the quantity of production or the scale of sales.

Utility Rates

Charges imposed by utility companies for the use of services such as electricity, gas, water, and sewer.