BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the government consistently passes stimulus money
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the government raises taxes
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both banks and government set policies to meet the three economic goals
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Detailed explanation-1: -Monetary policy is employed by the government as an effective tool to promote economic stability and achieve certain predetermined objectives.
Detailed explanation-2: -main factors contribute to changes in the business cycle: business decisions; interest rates; consumer expectations; and external issues.
Detailed explanation-3: -Expansion In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.
Detailed explanation-4: -The government has two tools at its disposal to moderate the short-term fluctuations of the business cycle-fiscal policy or monetary policy. Fiscal policy refers to changes in the budget deficit. Monetary policy refers to changes in short-term interest rates by the Federal Reserve.