Which Economic Perspective Would Be Most Closely Associated with the View

question 95

Multiple Choice

Which economic perspective would be most closely associated with the view that discretionary monetary policy is an effective force for stabilizing the economy?

• A) Monetarism
• B) Mainstream economics
• C) Rational expectations
• D) New classical economics

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Definitions:

Biological Need

Fundamental physiological requirements essential for maintaining life, such as food, water, and shelter.

Reinforcer

Any stimulus that increases the likelihood of a preceding behavior to occur again by either presenting a positive stimulus or removing a negative one.

Punisher

Anything that follows a response and weakens it or decreases the probability that it will occur.

Strengthens

To make or become stronger or more resilient, often used in the context of physical, emotional, or mental attributes.