The Great Moderation Consensus About Macroeconomic Policy Is That

question 247

Multiple Choice

The Great Moderation consensus about macroeconomic policy is that:

• A) only monetary policy works against recessions, but fiscal policy is effective only in the long run.
• B) expansionary monetary and fiscal policies can both reduce unemployment in the long run.
• C) expansionary monetary and fiscal policies are both effective in the short run but not in the long run.
• D) discretionary monetary and fiscal policies are effective in the short run and in the long run.

Assess how interest rates affect the maturity value of different types of financial instruments like GICs, T-Bills, and savings accounts.

Compute the interest earned or paid over a specific period given changing rates and principal amounts.

Evaluate investment options by comparing simple interest rates and potential returns.

Apply the concept of discounted cash flow to ascertain the present value of future payments.

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Definitions:

Management

The process of planning, organizing, leading, and controlling resources within an organization to achieve its objectives effectively and efficiently.

Cost Changes

Adjustments in the financial outlays associated with different business activities or over time.

Break-even Point

The level of sales at which total revenues equal total expenses, resulting in no net profit or loss.

Sales Mix

The combination of different products or services a company sells, usually expressed in terms of the proportion of total sales volume each constitutes.