The Recommendation to Use Monetary Policy to Stabilize the Economy

question 14

Multiple Choice

The recommendation to use monetary policy to stabilize the economy and use fiscal policy only when monetary policy is ineffective is consistent with _____ macroeconomics.

• A) classical
• B) Keynesian
• C) monetarist
• D) Great Moderation consensus

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Definitions:

Local Potential

A reversible, localized change in the electrical potential of a neuron's membrane, which can lead to an action potential if a certain threshold is reached.

Depolarization

A reduction in the difference in electric charge across a cell membrane, which is essential for generating action potentials in neurons and muscle cells.

Repolarization

The process of restoring the negative charge inside the cell membrane after a depolarization event.

Afterpotential

The change in membrane potential that follows the completion of an action potential in nerve cells.