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.

Question

Quizplus · Accepted Answer

Economic fine-tuning involves the use of both monetary and fiscal policies to counteract small undesirable movements in economic activity. This allows for a more holistic approach to stabilizing the economy and addressing fluctuations in the business cycle. The use of both policies also allows for more flexibility in addressing different economic scenarios.

Economic Fine-Tuning Is the (Usually Frequent)use of