Which One of the Following Is Probably the Most Direct

question 25

Multiple Choice

Which one of the following is probably the most direct and immediate way to stimulate or slow the economy although it is not very useful for fine tuning economic performance?

• A) Fiscal policy
• B) Monetary policy
• C) Supply-side policy
• D) Rising minimum wages

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Definitions:

Price Elasticity

A measure of how the quantity demanded of a good or service changes in response to a change in its price.

Equation

A mathematical statement that asserts the equality of two expressions, often used to solve problems and express relationships in various fields.

Cross Price Elasticity

An indicator of the sensitivity of the demand for one product in relation to the price variations of a different product.

Mobile Service

Mobile service refers to the provision of telecommunication services such as voice and data communication over a network by a provider to a mobile device.