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.

---

Definitions:

Cardiovascular Disease

A class of diseases involving the heart or blood vessels, significant contributors to mortality and morbidity worldwide.

Anxiety

A psychological condition marked by intense feelings of nervousness, apprehension, or dread that significantly disrupt an individual's routine life.

Depression

A psychiatric disorder defined by ongoing feelings of depression or a diminished interest in tasks, resulting in substantial interference with daily activities.

Behavior Pattern

Repeated ways of acting or reacting that are characteristic of an individual or group.