Arguments in Favor of Passive Economic Policy Include All of the Following

question 4

Multiple Choice

Arguments in favor of passive economic policy include all of the following except:

• A)monetary and fiscal policies work with long and variable lags, which can produce destabilizing results.
• B)economic forecasts have too large a margin of error to be useful in formulating stabilization policy.
• C)recessions do not reduce economic well-being, so using monetary and fiscal policy for stabilization is
• D)the Great Depression could have been avoided if the Federal Reserve had pursued a policy of steady money growth.

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Definitions:

Hemophilia

A genetic disorder that impairs the body's ability to make blood clots, leading to excessive bleeding from minor injuries.

Sex-Linked Disorders

Genetic diseases that are determined by genes located on the sex chromosomes, often manifesting differently between sexes.

Hemophilia

A rare genetic disorder where the blood's ability to clot is severely reduced, causing excessive bleeding from even slight injuries.

Royal Families

Families that belong to a royal lineage, often ruling over a monarchy and carrying titles of nobility.