Dove Policies Advocate

question 47

Multiple Choice

Dove policies advocate

• A) less stability in output if greater price stability can be achieved.
• B) more stability in output if greater price stability can be achieved.
• C) more stability in output even at the cost of more price instability.
• D) stable prices at any cost.
• E) more stability in tax revenues even at the cost of more unemployment.

---

Definitions:

Futures Price

The predetermined price at which a futures contract is agreed upon to buy or sell an asset at a future date.

Short Hedge

A risk management strategy used to offset potential losses in investments by taking an opposite position in related assets or derivatives.

Spot Market

A public financial market where commodities or financial instruments are traded for immediate delivery.

Futures Market

A standardized market for buying and selling contracts that obligate the delivery of commodities, currencies, or financial instruments at a future date.