Which of the Following Statements Do Opponents of Active Stabilization

question 16

Multiple Choice

Which of the following statements do opponents of active stabilization policy believe?

• A)Fiscal policy cannot stabilize the economy even in theory.
• B)Fiscal policy has no impact in the long run.
• C)The effects of monetary policy may be long lived.
• D)The Bank of Canada should try to fine-tune the economy.

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