Fiscal and Monetary Policies

question 32

Multiple Choice

Fiscal and monetary policies:

• A)have no role in macroeconomic policies.
• B)have been used by the government for over 250 years.
• C)are most effective in microeconomic settings.
• D)are used to correct for short-term economic fluctuations.

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Definitions:

Scaffold

A framework that offers children temporary support as they develop higher levels of thinking.

Schema

A mental structure of preconceived ideas, a framework representing some aspect of the world, or a system of organizing and perceiving new information.

Critical Period

A specific time in development during which the presence or absence of certain experiences has a profound influence on the formation of abilities or characteristics.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others, and to understand that others have beliefs and perspectives different from one's own.