Which of the Following Does NOT Represent the Broad Consensus

question 180

Multiple Choice

Which of the following does NOT represent the broad consensus among macroeconomists?

• A)Monetary policy should play the main role in stabilization policy.
• B)The central bank should be independent, insulated from political pressures, to avoid a political business cycle.
• C)Discretionary fiscal policy should be used sparingly because of policy lags and the risks of the political business cycle.
• D)Discretionary fiscal policy can lower the natural rate of unemployment.

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