Which of the Following Statements Is Likely to Be Made

question 110

Multiple Choice

Which of the following statements is likely to be made by an economist who does not believe in activist monetary policy? (1) The more closely monetary policy can he designed to meet the particulars of a given economic environment,the better.(2) Because of long and uncertain time lags,activist monetary policy may be destabilizing rather than stabilizing.(3) There is sufficient flexibility in wages and prices in modern economies to allow the economy to equilibrate in reasonable speed at the natural level of Real GDP,(4) The "same-for-all-seasons" monetary policy is the way to proceed.(5) There is evidence that monetary policy in the mid-1970s caused a recession.

• A) (1),(2),and (3)
• B) (1),(4),and (5)
• C) (2),(3),and (4)
• D) (3),(4),and (5)
• E) (1)only

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Definitions:

Rights

Legal, social, or ethical principles of freedom or entitlement; the fundamental normative rules about what is allowed of people or owed to people.

Individual

Pertains to a single human being as distinct from a group, class, or family.

Kohlberg

Lawrence Kohlberg proposed a theory of moral development consisting of six stages within three levels, indicating how individuals' abilities to judge right from wrong evolve through their lifetime.

Moral Development

The process through which individuals evolve in their understanding of ethics and morality, shaping their behavior and attitudes towards what is right or wrong.