Compared to Monetary Policy,fiscal Policy

question 11

Multiple Choice

Compared to monetary policy,fiscal policy

• A) has a shorter decision lag
• B) is used for more purposes and seeks to achieve more goals
• C) is a more flexible tool for stabilization
• D) is less likely to be offset by changes in household or firm behavior
• E) is not subject to as much information lag

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Definitions:

Purchase Price

The total cost that is paid to acquire an asset or service, often including additional fees and taxes beyond the sticker price.

Equity Method

An accounting technique used to record investments where the investor has significant influence but does not control the investee.

Net Income

The remaining earnings of a company after subtracting total expenses and taxes from its gross revenue.

Dividends

Payments made by a corporation to its shareholders, usually out of profits or reserves.