Stabilization Policy Refers to Policy Actions Aimed At

question 76

Multiple Choice

Stabilization policy refers to policy actions aimed at:

• A) reducing the severity of short-run economic fluctuations.
• B) equalizing incomes of households in the economy.
• C) maintaining constant shares of output going to labor and capital.
• D) preventing increases in the poverty rate.

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Definitions:

IRR

The Internal Rate of Return is the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Mutually Exclusive

situations or events that cannot occur at the same time.

Internal Rate of Return

The Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.

Required Rate

The minimum return an investor expects to achieve by investing in a project, often used as a benchmark to evaluate financial investments.