A Major Weakness of Monetary Policy as a Way to Affect

question 2

Multiple Choice

A major weakness of monetary policy as a way to affect the economy is that ______.

• A) it requires unpopular spending and taxing decisions
• B) it is subject to pressure from business and labor interests
• C) it is hard to control because small changes can have large effects
• D) it tends to lead to runaway deficits
• E) there is no evidence that it works

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Definitions:

Morphine

An opioid analgesic drug derived from opium, used medically to relieve severe or acute pain.

Conditioned Response

A learned response to a previously neutral stimulus that becomes associated with an unconditioned stimulus through conditioning.

Unconditioned Stimulus

A stimulus that naturally triggers a reflexive response without any prior learning.

Salivation

The secretion of saliva, often triggered reflexively by the anticipation or presence of food as a part of the digestive process.