Which of the Following Is a Lesson That Can Be

question 85

Multiple Choice

Which of the following is a lesson that can be learned from monetary policy during the Great Depression?

• A) Monetary policy should be changed frequently in response to economic fluctuations.
• B) Prolonged periods of monetary contraction will retard economic growth.
• C) Low interest rates will direct an economy toward recovery.
• D) Monetary policy should focus on variables such as output and employment.