Monetarists Argue That

question 99

Multiple Choice

Monetarists argue that:

• A) the impact lag for monetary policy is short and predictable.
• B) stabilization policies may actually be destabilizing.
• C) the Federal Reserve System should use active monetary policy.
• D) active monetary policy should be used to reinforce active fiscal policy.

---

Definitions:

Berkowitz's Theory

A psychological theory suggesting that frustration leads to aggression, and the presence of aggressive cues directs this frustration towards aggression.

Frustration

A negative emotional state resulting from blocked or unmet needs, goals, or desires.

Pain

A distressing sensation and emotional experience linked to actual or potential tissue damage.

Unpleasant Events

Events or occurrences that cause discomfort, distress, or unhappiness to an individual or group.