Which of the Following Is NOT an Argument of Non-Activists

question 110

Multiple Choice

Which of the following is NOT an argument of non-activists?

• A)private spending may show some instability 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 GNP
• D)it is true that monetary and fiscal policy have destabilizing in the past,but economic knowledge is now advanced enough to permit effective countercyclical policy

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