Poorly Timed Discretionary Policy Can Do More Harm Than Good

question 53

Multiple Choice

Poorly timed discretionary policy can do more harm than good.Getting the timing right with fiscal policy is generally

• A)less difficult than with monetary policy.
• B)far less difficult than with monetary policy.
• C)more difficult than with monetary policy.
• D)about the same difficulty as with monetary policy.

---

Definitions:

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.

Analytical Techniques

A broad range of methods and tools used to evaluate and interpret data for decision-making and problem-solving purposes.

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, calculated by summing the present values of incoming and outgoing cash flows.

Cost of Capital

The rate of return that a company must pay on its investments to satisfy its shareholders or debt-holders.