Arguments in Favour of Passive Economic Policy Include All of the Following

question 64

Multiple Choice

Arguments in favour of passive economic policy include all of the following except:

• A) monetary and fiscal policies work with long and variable lags,which can produce destabilizing results.
• B) economic forecasts have too large a margin of error to be useful in formulating stabilization policy.
• C) recessions do not reduce economic well-being,so using monetary and fiscal policy for stabilization is unnecessary.
• D) the Great Depression could have been avoided if the Federal Reserve in the U.S.had pursued a policy of steady money growth.

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Definitions:

Psychological Abnormality

Behaviour, speech, or thought that impairs the ability of a person to function in a way generally expected of him or her, in the context in which the unusual functioning occurs.

Sociocultural Factors

Influences that arise from the societal and cultural contexts of people's lives affecting their thoughts, behaviors, and emotions.

Bodily Fluids

Liquids produced by the body to carry out its functions, including blood, saliva, urine, and sweat.

Brain Dysfunction

Involves abnormalities in the structure or function of the brain, leading to various cognitive, emotional, or behavioral issues.