Simulation Is Often Viewed as the Technique of Last Resort

question 17

True/False

Simulation is often viewed as the technique of last resort because it can be applied to situations when there is no applicable quantitative model.

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Definitions:

Real Interest Rate

Nominal interest rate minus inflation rate.

Monetarist

Pertains to an economic theory focusing on the control of the money supply as a tool for managing economic stability and growth.

Milton Friedman

An American economist and a key figure in the Chicago School of Economics, known for his research on consumption analysis, monetary history and theory, and the complexity of stabilization policy.

John Maynard Keynes

A British economist whose theories on the causes of prolonged unemployment and recommendations for government intervention in economies to stimulate demand and growth form the basis of Keynesian economics.