The Purpose of Functional Finance Is to

question 23

Multiple Choice

The purpose of functional finance is to

• A) decrease deficits through monetary policy.
• B) use fiscal policy to keep aggregate demand at the desired level,regardless of the impact on deficits.
• C) tax corporate income first at the corporate level,and then again when it is distributed to shareholders.
• D) use monetary policy to keep deficits stable over time.