Policymakers Are Often Reluctant to Turn to Unconventional Monetary Policy

question 22

Multiple Choice

Policymakers are often reluctant to turn to unconventional monetary policy measures because:

• A) they are uncertain of the quantitative impact of using them.
• B) such policies are potentially too powerful.
• C) such policies require Congressional approval and Congress is often slow to act.
• D) such policies require coordination with the central bankers of foreign countries.

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Definitions:

Philosophy

The study of the fundamental nature of knowledge, reality, and existence, often considered through questioning and systematic reasoning.

Race

A social construct used to categorize humans into large and distinct populations or groups by heritable physical, social, and cultural traits.

Social-Contract Theory

A theory in political philosophy that posits the legitimacy of the authority of the state over the individual results from a contract or agreement among the populace or between the rulers and the ruled.

Society

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