Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?

Correct answer: D. instrument variables

  • A. indicative plan
  • B. central bank policies
  • C. central planning
  • D. instrument variables

Explanation

Monetary, fiscal, exchange-rate, tariff, tax, subsidy, and investment measures are policy instruments used to achieve economic goals. They are therefore called instrument variables, not a single type of plan or central-bank policy.

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