The Primary Argument Against Active Monetary and Fiscal Policy Is

question 45

Multiple Choice

The primary argument against active monetary and fiscal policy is that

• A)attempts to stabilize the economy do not constitute a proper role for government in a democratic society.
• B)these policies affect the economy with a long lag.
• C)these policies affect the economy too quickly and with too much impact.
• D)history demonstrates that interest rates respond unpredictably to active policies,leading to unpredictable effects on income.

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Definitions:

Longitudinal Studies

Research designs that follow the same subjects over a period of time, allowing for the observation of changes and developments.

Life Span

The duration of time from birth to death of an organism, used in human development to study the different stages and transitions experienced throughout one's life.

Characteristic Mode

The typical or unique way in which something functions or expresses itself.