Which of the Following Is True About Theories in General

question 16

Multiple Choice

Which of the following is true about theories in general?

• A) Theories can include any coherent set of ideas or statements to explain, or provide guidance in respect of, certain phenomena.
• B) Theories must be empirically based to describe what is, rather than what should be.
• C) Theories must be based on inductive reasoning to provide a generalisation or prediction.
• D) All of the given options are correct.

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Definitions:

Money Supply

Money Supply refers to the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the United States' central banking system and setting monetary policy.

Monetary Policy

Means by which the Fed controls the amount of money available in the economy.