Which One of the Following Is an Example of Passive

question 162

Multiple Choice

Which one of the following is an example of passive policymaking?

• A) introducing expansionary monetary policy to combat a recession
• B) introducing expansionary monetary policy to combat inflation
• C) introducing expansionary fiscal policy to combat a recession
• D) following a predetermined monetary policy rule

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in financial analysis to assess investment opportunities.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Capacity Alternatives

Different strategies or options available to an organization to adjust or increase its production or service capacity to meet variations in demand.

Market Acceptance

The degree to which a new product or service is accepted and purchased by customers in the market.