Which of the Following Do Critics of Stabilization Policy Argue

question 74

Multiple Choice

Which of the following do critics of stabilization policy argue?

• A) There is too short a lag between the time policy is passed and the time policy has an impact on the economy.
• B) The impact of policy may not last long enough for the problem to be solved.
• C) Policy cannot cause economic fluctuations.
• D) Policy can be a source of, instead of a cure for, recessions.

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Definitions:

Semiannually

Semiannually implies an occurrence or calculation that happens twice a year, often used in the context of interest payments or reporting periods.

Annually

Occurring once every year or relating to a period of one year.

Current Yield

Yearly returns in the form of interest or dividends as a ratio of the security's present price.

Coupon

A coupon is the interest payment made to bondholders, usually on an annual or semi-annual basis.