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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