The Activist Response to the Monetarist Platform Says That

question 61

Multiple Choice

The activist response to the monetarist platform says that

• A)private spending may show some stability,but monetary or fiscal policy designed to stabilize it will just make things worse.
• B)private spending is stable partly because consumption spending is based on permanent income.
• C)even if prices are not completely flexible in the short-run,given time there is enough flexibility for the system to return to the natural level of real GDP.
• D)None of the above.

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