Advocates of Passive Policy Argue That Because Monetary and Fiscal

question 3

Multiple Choice

Advocates of passive policy argue that because monetary and fiscal policy lags are:

• A) short and fixed, these policies should not be used to offset shocks.
• B) long and variable, these policies should not be used to offset shocks.
• C) short and fixed these, policies should be used to offset shocks.
• D) long and variable these, policies should be used to offset shocks.