The possible asymmetry of monetary policy is the central idea of the
A) invisible hand concept.
B) ratchet analogy.
C) pushing-on-a-string analogy.
D) bandwagon effect.

Question

Quizplus · Accepted Answer

The pushing-on-a-string analogy refers to the idea that while monetary policy can stimulate economic growth and inflation, there may be a limit or "string" to how effective it can be in slowing down an overheating economy or reducing inflation. This suggests an asymmetry or imbalance in the effectiveness of monetary policy.

The Possible Asymmetry of Monetary Policy Is the Central Idea