Which of the Following Statements Is Likely to Be Made

question 110

Multiple Choice

Which of the following statements is likely to be made by an economist who does not believe in activist monetary policy? (1) The more closely monetary policy can he designed to meet the particulars of a given economic environment,the better.(2) Because of long and uncertain time lags,activist monetary policy may be destabilizing rather than stabilizing.(3) There is sufficient flexibility in wages and prices in modern economies to allow the economy to equilibrate in reasonable speed at the natural level of Real GDP,(4) The "same-for-all-seasons" monetary policy is the way to proceed.(5) There is evidence that monetary policy in the mid-1970s caused a recession.

• A) (1),(2),and (3)
• B) (1),(4),and (5)
• C) (2),(3),and (4)
• D) (3),(4),and (5)
• E) (1)only

Learn about the interactions between market efficiency, capital budgeting, and the cost of capital, and how these elements influence a firm's financial strategy.

Understand the concepts of different market structures including pure monopoly, monopolistic competition, and pure competition.

Comprehend the causes and effects of shifts in demand and supply curves.

Identify the factors affecting the supply curve, including natural forces and price controls.

---

Definitions:

Entrepreneurship Training

Programs or educational initiatives designed to equip individuals with the knowledge, skills, and mindset needed to successfully start and run their own businesses.

Schools of Business

Educational institutions that specialize in teaching subjects related to business, management, and economics.

Life Sciences

A branch of science that deals with living organisms and life processes.

Flow of Finance

Refers to the movement of money among various participants in an economy including institutions, markets, individuals, and governments.