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One Similarity Between the Policy Recommendations of the New Classical

Question 33

Multiple Choice

One similarity between the policy recommendations of the new classical and monetarist models is that


A) both believe that monetary policy has much stronger employment effects than does fiscal policy.
B) are policy activists.
C) both believe in the natural rate of output.
D) both believe that discretion is preferable to rules.
E) none of the above.

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