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.

---

Definitions:

Communication Barrier

Any obstacle that impedes the flow of information between individuals or groups, making communication less effective.

Filtering

The process of selectively presenting information, often to remove or reduce the impact of potentially negative aspects.

Speedy Response

Prompt action or reply to inquiries, situations, or requirements.

Increased Expectation

The rising demands or standards one is expected to meet, often leading to added pressure.