Those Who Favor an Active Approach to Policy Believe That

Multiple Choice

Those who favor an active approach to policy believe that

A) discretionary monetary policy cannot be used to help the economy since monetary policy lags are long
B) discretionary fiscal policy cannot be used to help the economy since fiscal policy lags are long
C) lags associated with implementing policies are too long and unstable for discretionary policy to be effective
D) despite the lags involved,implementing discretionary policy is preferable to inaction
E) none of the above