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A Major Weakness of Monetary Policy as a Way to Affect

Question 3

Multiple Choice

A major weakness of monetary policy as a way to affect the economy is that ______.


A) it requires unpopular spending and taxing decisions
B) it is subject to pressure from business and labor interests
C) it is hard to control because small changes can have large effects
D) it tends to lead to runaway deficits
E) there is no evidence that it works

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