Economic fine-tuning is the (usually frequent) use of
A) monetary policy that is based on a predetermined steady growth rate in the money supply to counteract even small undesirable movements in economic activity.
B) only fiscal policy to counteract even small undesirable movements in economic activity.
C) monetary and fiscal policies to counteract even small undesirable movements in economic activity.
D) fiscal policy that both balances the budget and counteracts even small undesirable movements in economic activity.
C
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A firm earns a normal profit when its total revenues just offset both the ________ cost and ________ cost
A) accounting; opportunity B) accounting; replacement C) historical; replacement D) explicit; accounting
Foreign aid that flows from one country to another is called multilateral aid
a. True b. False Indicate whether the statement is true or false
In September 2007 the British bank Northern Rock which specialized in home mortgages experienced a noteworthy bank run
a. True b. False Indicate whether the statement is true or false
The markets for Products X and Y both have many sellers, each earning an economic profit of zero in the long run. One of the markets is perfectly competitive while the other is monopolistically competitive. Which of the following information can help you determine which operates in a monopolistically competitive market structure?
A. There is easy entry into the market for Product X. B. The firms selling product Y choose the profit-maximizing quantity where MR = MC. C. The price for Product X is higher than the marginal cost at the profit-maximizing quantity. D. The price for Product Y is equal to the average total cost at the long-run equilibrium quantity.