Which of the Following Statements Is Likely to Be Made

question 92

Multiple Choice

Which of the following statements is likely to be made by an economist who believes in activist monetary policy? (1) The more closely monetary policy can be designed to meet the particulars of a given economic environment,the better.(2) Because of long and uncertain time lags,activist monetary policy may be destabilizing rather than stabilizing.(3) There is sufficient flexibility in wages and prices in modern economies to allow the economy to equilibrate in reasonable speed at the natural level of Real GDP.(4) The "same-for-all-seasons" monetary policy is the way to proceed.(5) There is evidence that monetary policy in the mid-1970s caused a recession.

• A) (1),(2),and (3)
• B) (1),(4),and (5)
• C) (1)and (5)
• D) (4)and (5)
• E) (1),(3),and (4)

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Definitions:

Mutualistic

Describes a symbiotic relationship in which both organisms involved derive a benefit.

Coevolutionary Alteration

A change that occurs in the genetic composition of one species (or multiple species) in response to a genetic change in another, reflecting a coevolutionary relationship.

Speciation

Speciation is the evolutionary process by which new species arise. Speciation causes one evolutionary lineage to split into two or more lineages (cladogenesis).

Joshua Trees

A type of yucca plant native to the southwestern United States, characterized by its unique, spiky appearance and adapted to desert climates.