The phrase "You can't push on a string" is
A) a line from a 1930s song.
B) used to suggest that monetary policy can make money available but cannot ensure it will be spent.
C) an analogy used by monetarists to describe the ineffectiveness of fiscal policy.
D) used by rational expectations theorists in their criticisms of supply-side economics.
E) a reference to the fact that Congress is in control of the government's purse strings and determines spending without regard to economic impact.

Question

Quizplus · Accepted Answer

This phrase is commonly used to suggest that monetary policy can make money available but cannot ensure it will be spent, as it is difficult to force individuals to spend or invest money.

The Phrase "You Can't Push on a String" Is