The Two Major Policy Tools Available for Controlling Economic Activity

question 4

Multiple Choice

The two major policy tools available for controlling economic activity are ________.

• A)interest rate and taxing policies
• B)interest rate and credit policies
• C)monetary and fiscal policies
• D)tax and spending policies

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Definitions:

Division of Income

The distribution of a company's earnings among various stakeholders, such as dividends for shareholders or reinvestment into the business.

Half Time

A term typically associated with employment or academic status, indicating a work or study load that is half of what is considered full time.

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Fair Market Value

The estimated price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.