Which of the Following Statements Is True

question 80

Multiple Choice

Which of the following statements is true?

• A) Nonactivists argue that monetary and fiscal policies should be deliberately used to smooth out the business cycle.
• B) Fine-tuning consists of the usually frequent use of monetary policy to counteract even small undesirable movements in economy activity.
• C) Keynesians would be more likely to advocate contractionary monetary policy to correct an inflationary gap than expansionary monetary policy to correct a recessionary gap.
• D) b and c
• E) a,b and c

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Definitions:

Restraint Of Trade

Any activity or agreement that restricts competition or interferes with free trade in the marketplace.

Sherman Act

A foundational United States antitrust law aiming to prohibit monopolistic practices and promote competition.

Sherman Act

An antitrust law passed by the United States Congress in 1890 that prohibits monopolistic practices and promotes competition by making it illegal to establish trusts that interfere with free trade.

Violation

The act of breaking or disregarding a law, agreement, or code of conduct.