Given Current Limitations,fiscal Policy as a Macroeconomic Stabilizer Is More

question 74

Multiple Choice

Given current limitations,fiscal policy as a macroeconomic stabilizer is more defensible the ________ the output gap being suffered,an argument supporting ________.

• A)larger; fine tuning
• B)larger; gross tuning
• C)smaller; fine tuning
• D)smaller; crowding out
• E)larger; crowding out

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Definitions:

Average Accounting Return

The average accounting return is a financial ratio that represents the average annual accounting profit compared to the initial investment.

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments by finding the interest rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Projects

Specific tasks or programs undertaken to achieve a goal, often characterized by defined scope, resources, and timeframe.

Average Accounting Return

A measure used to evaluate the profitability of investments, calculated as the average net income of a project divided by its average book value.