Which of the Following Is NOT an Argument Against Using

question 54

Multiple Choice

Which of the following is NOT an argument against using monetary policy to prick asset-price bubbles?

• A)The effect of increasing interest rates on asset prices is uncertain.
• B)A bubble may only exist in some asset-prices and monetary policy will affect all asset prices.
• C)Using monetary policy to prick an asset-price bubble may have adverse effect on the aggregate economy.
• D)Even though credit-drive bubbles are easier to identify,they are still relatively hard to identify.

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