Compared to the 1910-1960 period, economic fluctuations during the past 50 years have been less severe. Most economists believe that this increased stability is primarily the result of
A) more stable monetary policy.
B) the smaller budget deficits of recent decades.
C) regulations that promoted more affordable housing.
D) greater stability of stock prices as measured by the Dow Jones Industrial Average.

Question

Compared to the 1910-1960 period, economic fluctuations during the past 50 years have been less severe.  Most economists believe that this increased stability is primarily the result of
A) more stable monetary policy.
B) the smaller budget deficits of recent decades.
C) regulations that promoted more affordable housing.
D) greater stability of stock prices as measured by the Dow Jones Industrial Average.

Quizplus · Accepted Answer

Most economists attribute the increased stability of economic fluctuations in the past 50 years to more stable monetary policy, including central banks' increased focus on inflation targeting and improvements in communication and transparency.

Compared to the 1910-1960 Period, Economic Fluctuations During the Past