Economists Who Support a Monetary Rule as Opposed to an Activist

question 129

Multiple Choice

Economists who support a monetary rule as opposed to an activist monetary policy believe that the effectiveness lag in monetary policy is

• A)short and variable,policy changes affect AD quickly and are predictable.
• B)zero,policy changes have an immediate effect on expenditures.
• C)long and variable,policy changes affect AD slowly over time and are unpredictable.
• D)long,but predictable.

---

Definitions:

Market Price

The price at which a good or service is offered for sale in the open market.

Market Price

The market price at which you can currently buy or sell a service or asset in a specified market.

Negative Economic Profit

A situation where a firm's total revenue is less than its total costs, including opportunity costs.

Market Price

The current value at which an asset or service can be bought or sold in a competitive marketplace.