Those Who Favor an Active Approach to Policy Believe That

question 28

Multiple Choice

Those who favor an active approach to policy believe that:

• A)discretionary monetary policy cannot be used to help the economy since monetary policy lags are long.
• B)discretionary fiscal policy cannot be used to help the economy since fiscal policy lags are long.
• C)lags associated with implementing policies are too long and unstable for discretionary policy to be effective.
• D)despite the lags involved,implementing discretionary policy is preferable to inaction.
• E)the discretionary fiscal policy cannot be used to help the economy since it leads to inflation.

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