Monetarists Argue That Fiscal Policy Is Ineffective Because

question 18

Multiple Choice

Monetarists argue that fiscal policy is ineffective because:

• A) the velocity of money is predictable.
• B) the crowding-out effect reduces investment.
• C) prices and wages are sticky in the short run.
• D) it causes the value of the dollar to depreciate.

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Definitions:

Passion

An intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals.

Strong Ties

Deep, close relationships often characterized by trust, frequent interaction, and a strong sense of commitment.

Social Capital

Refers to the networks, relationships, and connections among people that can be leveraged for mutual benefit and to achieve goals.

Devil's Advocate

A person who expresses a contrary opinion or takes an opposing view, especially for the sake of argument or to explore different perspectives.