Should the fed use its policy tools to smooth out the


1. Should the Fed use its policy tools to smooth out the business cycle (reducing output during economic expansion and increasing output during recessions). Explain

2. Please Answer True or False for the Following:

A) Stock dividends create taxable income at the time the dividend is declared.

B) As a rule, you should expect most stocks to have market prices that are below their book value.

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Financial Management: Should the fed use its policy tools to smooth out the
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