Author Question: Discretionary monetary policy was more frequently employed than discretionary fiscal policy in the ... (Read 153 times)

geoffrey · **on:** Jun 29, 2018

Discretionary monetary policy was more frequently employed than discretionary fiscal policy in the two decades following World War II because

A) economic conditions did not seem to require any use of fiscal policy tools during this period.
B) economists did not yet believe in the effectiveness of fiscal policy.
C) inflation was not yet seen as a problem.
D) monetary policy could be altered without Congressional action.
E) monetary policy was thought to be capable of raising output while holding down prices.

Question 2

Refer to the scenario above. If Joseph prefers fairness to money, ________.

A) he will not accept any offer made by Phillip
B) he will always accept any offer made to him
C) he will accept the offer if offered an equal share of the money
D) Phillip will offer the minimum amount of money to Joseph