The Basic Keynesian Argument for Discretionary Monetary Policy Is That

question 118

Multiple Choice

The basic Keynesian argument for discretionary monetary policy is that

• A)monetary policy is the principal cause of business cycles.
• B)monetary policy is much more effective than fiscal policy.
• C)aggregate demand is unstable and monetary policy can help to stabilize it.
• D)reducing unemployment is much more important than reducing inflation.

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Definitions:

Density

In social contexts, it refers to the degree of closeness or connectedness in social networks; in physical contexts, it describes the concentration of matter in a given space.

Limited Space

Refers to the concept within environmental psychology and urban planning that physical space is finite, influencing human behavior, social interactions, and well-being.

Steinzor Effect

A phenomenon observed in communication patterns within groups, suggesting that individuals tend to respond more frequently to the last person who has spoken, influencing the flow of discussion.

Sitting Position

The manner in which an individual positions themselves while seated, which can affect their posture and health.