The Primary Argument Against Active Monetary and Fiscal Policy Is

question 45

Multiple Choice

The primary argument against active monetary and fiscal policy is that

• A)attempts to stabilize the economy do not constitute a proper role for government in a democratic society.
• B)these policies affect the economy with a long lag.
• C)these policies affect the economy too quickly and with too much impact.
• D)history demonstrates that interest rates respond unpredictably to active policies,leading to unpredictable effects on income.

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Definitions:

Dependent Variable

In scientific research, the variable that is being tested and measured, which is expected to change under the influence of the independent variable.

Independent Variable

In scientific research, the variable that is manipulated or changed to examine its effects on a dependent variable.

International Review Board

A committee that reviews and approves research involving human participants to ensure ethical standards are met.

Ethical Guidelines

Principles designed to govern behavior, often within a professional context, to ensure moral and ethical standards are maintained.