Consider Policymakers Who Favour a Passive Approach to Policy

question 32

Multiple Choice

Consider policymakers who favour a passive approach to policy.Which of the following do these policymakers believe?  

• A) Discretionary monetary policy can be used to help the economy because monetary policy lags are short. 
• B) Discretionary fiscal policy can be used to help the economy because fiscal policy lags are short. 
• 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.

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Definitions:

Feedback Source

The origin or provider of feedback, which can be individuals, groups, or systems offering information regarding performance or behavior.

Constructive Feedback

entails providing specific, actionable, and respectful criticism or advice aimed at helping someone improve or develop certain aspects of their performance or behavior.

Truthful

Being honest and not containing or telling any lies.

Superiority Attitude

A mindset or disposition in which an individual believes they are superior to others, often leading to dismissive or derogatory behaviors.