Once Monetary Policy Is Dedicated to Controlling the Level of Nominal

question 76

Multiple Choice

Once monetary policy is dedicated to controlling the level of nominal GDP,then fiscal policy can be used to

• A)choose the overall level of interest rates,with a high budget surplus implying a high level of interest rates.
• B)choose the overall level of interest rates,with a high budget deficit implying a high level of interest rates.
• C)control the level of inflation,with a high budget surplus implying a faster rate of inflation.
• D)control the level of inflation,with a high budget deficit implying a faster rate of inflation.

---

Definitions:

Student Loans

Financial borrowings aimed at financing higher education expenses, which must be repaid by the borrower.

Interest Rate

The part of a loan charged as interest to the borrower, typically demonstrated as an annual percentage of the unsettled loan portion.

Monthly Payment

A regularly scheduled payment that is often used to repay loans over a specific period of time.

Lump Sum

A single payment made at a particular time, as opposed to several smaller payments or installments.