Which One of the Following Is an Example of Passive

question 162

Multiple Choice

Which one of the following is an example of passive policymaking?

• A) introducing expansionary monetary policy to combat a recession
• B) introducing expansionary monetary policy to combat inflation
• C) introducing expansionary fiscal policy to combat a recession
• D) following a predetermined monetary policy rule

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Definitions:

Political Instability

A situation where a country experiences changes in its political environment that can affect its government's ability to govern effectively.

Depreciation

A decrease in the value of one currency relative to another currency.

Economic Disaster

An economic disaster refers to a sudden and severe downturn in the economy, leading to significant financial loss, high unemployment rates, and often a decline in the standard of living.

Trade Laws

Regulations and legal standards governing international and domestic trade, including import, export, tariffs, and free trade agreements.