Active Monetary Policy

Multiple Choice

Active monetary policy

A) is when central banks purposefully choose to only stabilize money and price levels through monetary policy.
B) has a real effect on the economy in the long run.
C) is when central banks take orders from the ruling party on how to conduct monetary policy.
D) is the strategic use of monetary policy to counteract macroeconomic expansions and contractions.
E) is when central banks only use fiscal policy to try to influence the economy.