"Economists Have Generally Come to Agree That Monetary Policy Is

question 139

Multiple Choice

"Economists have generally come to agree that monetary policy is better suited than fiscal policy for controlling GDP" because

• A)money is neutral and therefore changes affect real income but not prices.
• B)fiscal spending and tax changes affect the economy less than changes in the money supply.
• C)the Fed can make decisions quickly,Congress and the President more slowly.
• D)Congress can make decisions quickly,the Fed more slowly.

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Definitions:

Monthly Interest Rate

The interest rate charged on a loan or realized on an investment over a month's time period.

Credit Policy

A set of guidelines that a company follows to determine credit terms for customers, which can impact cash flow and sales.

Monthly Interest Rate

The interest rate charged or paid on a loan or savings account calculated on a monthly basis.

Default Rate

The percentage of borrowers who fail to repay their loans or meet contractual obligations.