Most economists believe that
A) a monetary policy that achieves price stability will reduce uncertainty and provide the framework for strong economic growth.
B) demand stimulus policies will reduce the long-term average rate of unemployment.
C) expansionary monetary policy, if persistently followed, will reduce nominal interest rates.
D) inflation is primarily the result of large budget deficits and other elements of expansionary fiscal policy.

Question

Quizplus · Accepted Answer

Most economists believe that achieving price stability through monetary policy can reduce uncertainty and provide a stable framework for economic growth. This is because inflation can lead to uncertainty in pricing and investment decisions, while price stability encourages investment and long-term planning.

Most Economists Believe That