If Government Policymakers Are Shortsighted and Use Monetary or Fiscal

question 62

Multiple Choice

If government policymakers are shortsighted and use monetary or fiscal policy to increase aggregate demand, then they will

• A)encourage growth with little inflation in the long run.
• B)tend to focus on short-run benefits while ignoring the possibility of accelerating inflation in the long run.
• C)be careful to guard against long-run inflation.
• D)All of the above are correct.

---

Definitions:

Marbury v. Madison

A seminal U.S. Supreme Court case in 1803 that established the principle of judicial review, empowering courts to strike down laws and executive actions they find unconstitutional.

Presidential Veto

The power of the President of the United States to refuse to sign a bill into law, thus preventing its enactment.

Majority Vote

A decision-making process that is reached when more than half of the members in a voting body vote in favor of a proposal.

Congress

The legislative branch of the United States federal government, composed of the House of Representatives and the Senate, responsible for making national laws.