Those Who Favor an Active Approach to Policy Believe That

question 156

Multiple Choice

Those who favor an active approach to policy believe that

• A)discretionary monetary policy cannot be used to help the economy since monetary policy lags are long
• B)discretionary fiscal policy cannot be used to help the economy since fiscal policy lags are long
• 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