Advocates of Passive Policy Argue That Because Monetary and Fiscal

question 3

Multiple Choice

Advocates of passive policy argue that because monetary and fiscal policy lags are:

• A) short and fixed, these policies should not be used to offset shocks.
• B) long and variable, these policies should not be used to offset shocks.
• C) short and fixed these, policies should be used to offset shocks.
• D) long and variable these, policies should be used to offset shocks.

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Definitions:

Rain Forests

Tropical forests characterized by high rainfall, dense canopy, and significant biodiversity.

Commercial Logging

The practice of cutting down trees and preparing timber for market use, often involving large-scale operations.

Hydroelectric Power

Power produced by the movement of water, specifically the generation of electrical energy.

Sand Dunes

Mounds or ridges of sand formed by the wind or sometimes by water flow, common in deserts and on beaches.