Monetarists Argue That Using Active Discretionary Monetary Policy Is Dangerous

question 30

Multiple Choice

Monetarists argue that using active discretionary monetary policy is dangerous because it is subject to:

• A) information lags.
• B) long-term policy determination lags.
• C) short-term policy effectiveness lags.
• D) information, policy determination and policy effectiveness lags.

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Definitions:

United States

A country in North America consisting of 50 states, known for its large economy, diverse population, and significant cultural and political influence worldwide.

Mexico

A country in North America, bordered by the United States to the north, the Pacific Ocean to the south and west, Guatemala, Belize, and the Caribbean Sea to the southeast, and the Gulf of Mexico to the east.

1910

Refers to the year which marked significant events globally such as the start of the Mexican Revolution and advancements in technology and society at the early 20th century.

Late Nineteenth Century

A period from 1870 to 1900 characterized by significant industrial, social, and political changes in many parts of the world.