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Arguments in Favour of Passive Economic Policy Include All of the Following

Question 1

Multiple Choice

Arguments in favour of passive economic policy include all of the following except:


A) monetary and fiscal policies work with long and variable lags,which can produce destabilizing results.
B) economic forecasts have too large a margin of error to be useful in formulating stabilization policy.
C) recessions do not reduce economic well-being,so using monetary and fiscal policy for stabilization is unnecessary.
D) the Great Depression could have been avoided if the Federal Reserve in the U.S.had pursued a policy of steady money growth.

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