Which of the Following Best Reflects the Nonactivist View of Stabilization

question 50

Multiple Choice

Which of the following best reflects the nonactivist view of stabilization policy?

• A) Monetary and fiscal policies exert little impact on the economy.
• B) Discretionary policy changes often make matters worse.
• C) Fiscal policy should be used to help stabilize the economy; monetary policy should not.
• D) Expansionary monetary policy is the primary source of rapid economic growth.

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