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:

Income Inequality

The unequal distribution of income within a population, often measured by various statistical means, indicating the gap between the rich and the poor.

Developed Countries

Nations with high levels of industrialization, a higher standard of living, advanced technological infrastructure, and more complex economic systems compared to developing countries.

Poverty Line

An absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty.

Absolute Standard

A measure or criterion that is not influenced by external factors and remains constant over time.