Which of the Following Statements Is FALSE

question 133

Multiple Choice

Which of the following statements is FALSE?

• A)Early Keynesianism downplayed the effectiveness of monetary as opposed to fiscal policy.
• B)Monetarism argued that discretionary monetary policy does more harm than good.
• C)The natural rate hypothesis places sharp limits on what macroeconomic policy can achieve.
• D)Concerns about a political business cycle suggest that the central bank should not be independent and argue for a strong discretionary fiscal and monetary policy.

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Definitions:

Afar Region

A geologically active area located in the Horn of Africa, known for its unique geological features including the Afar Triangle and part of the Great Rift Valley.

Crystalline Rocks

Rocks composed of crystals that are tightly interlocked, typically formed through the cooling and solidification of magma or by metamorphism.

Continental Shield

A large geological area composed of Precambrian crystalline rocks that are often millions of years old, making up the stable parts of continents.

Sediment-Filled Basin

A low area on the Earth's surface where sediments have accumulated over time, often due to the sinking or subsidence of the crust.