The Goals of Monetary Policy Tend to Be Interrelated

question 73

Multiple Choice

The goals of monetary policy tend to be interrelated.For example,when the Fed pursues the goal of ________,it also can achieve the goal of ________ simultaneously.

• A)high employment; economic growth
• B)high employment; lowering government spending
• C)economic growth; a low current account deficit
• D)stability of financial markets; a low current account deficit

---

Definitions:

Own Support

Refers to the financial contribution made by an individual towards their own living expenses, potentially affecting tax filing status and dependency exemptions.

Exemption

Deductions allowed by law to reduce taxable income based on taxpayer and dependent information.

Gross Income Test

A criterion used by the IRS to determine if someone can be claimed as a dependent based on their gross income.

Relationship Test

Criteria used by the IRS to determine eligibility for certain tax benefits and deductions, based on the taxpayer's relationship to another individual.