If Policymakers Announce in Advance How Policy Will Respond to Various

question 46

Multiple Choice

If policymakers announce in advance how policy will respond to various situations and commit themselves to following through on this announcement, this is:

• A) policy by rule.
• B) policy by discretion.
• C) time inconsistent policy.
• D) monetary policy.

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Definitions:

Assets

Properties (resources) of value owned by a business (cash, supplies, equipment, land).

Liabilities

Obligations that come due in the future. Liabilities are the financial rights or claims of creditors to assets.

Departmental Accounting

An accounting method that tracks the income and expenses of individual departments within a company, helping in performance assessment and budgeting.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.