Those Who Favor a Passive Approach to Policy Believe That

question 74

Multiple Choice

Those who favor a passive approach to policy believe that

• A)discretionary monetary policy can be used to help the economy since monetary policy lags are short
• B)discretionary fiscal policy can be used to help the economy since 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
• E)none of the above

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