According to Monetarists

question 46

Multiple Choice

According to monetarists:

• A)governments should use discretionary monetary policy, but not discretionary fiscal policy
• B)governments should impose a monetary rule that forces their central bank to increase the money supply by a constant rate
• C)governments should use discretionary fiscal policy, but not discretionary monetary policy
• D)governments should use both discretionary fiscal and monetary policies to lessen the severity of the business cycle
• E)governments should use a consistently expansionary monetary policy to push up employment and output

---

Definitions:

Socially Inappropriate

Socially Inappropriate behavior refers to actions or remarks that are considered unacceptable or offensive by societal norms and expectations.

Groupthink

The mode of thinking that occurs when the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives.

Mood Contagion

The phenomenon where an individual's emotions or affective states can induce similar emotions in others around them.

Social Norms

Unwritten rules that are accepted and followed by members of a society or social group, guiding behaviors and establishing expectations.