Which of the Following Are Reasons Why Monetarists Oppose Activist

question 91

Multiple Choice

Which of the following are reasons why monetarists oppose activist stabilization policies?
I. Monetary policy lags are so long and variable that trying to stabilize the economy using
Jmonetary policy can be destabilizing.
II. Monetary policy affects a nation's currency exchange rate and affects the nation's competitiveness in the global market.
III. Because of crowding-out effects, fiscal policy has no effect on GDP.
IV. Fiscal policies must be financed by government borrowing or tax increases, both of which affect aggregate demand negatively.

• A) I only
• B) I and II only
• C) I and III only
• D) I, II, III, and IV

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Definitions:

Secret Research Data

Confidential information generated from scientific or academic studies that is not disclosed to the public.

Injunction

A court order requiring an individual or entity to do or cease doing a specific action.

Self-Defence

A legal defense where an individual uses reasonable force to protect themselves from physical harm or threat of harm by another person.

Excessive Response

A reaction or measure that is disproportionately large or extreme in relation to the action or event that prompted it.