The pushing-on-a-string analogy makes the point that monetary policy may be better at
A)controlling demand-pull inflation than cost-push inflation.
B)pulling the aggregate demand curve leftward than pushing it rightward.
C)pulling the unemployment rate downward than pushing the economic growth rate upward.
D)keeping rapid inflation from occurring than reducing it once it has begun.

Question

Quizplus · Accepted Answer

The analogy suggests that monetary policy is more effective at restraining or pulling back economic activity (like pulling a string) than stimulating or pushing it forward (like pushing a string).

The Pushing-On-A-String Analogy Makes the Point That Monetary Policy May