Which of the following statements do opponents of active stabilization policy believe?
A)Fiscal policy cannot stabilize the economy even in theory.
B)Fiscal policy has no impact in the long run.
C)The effects of monetary policy may be long lived.
D)The Bank of Canada should try to fine-tune the economy.

Question

Quizplus · Accepted Answer

Opponents of active stabilization policy often argue that the effects of monetary policy can be long-lived, leading to potential destabilization rather than stabilization. They believe that attempts to fine-tune the economy can result in unintended consequences due to the time lags and complexities involved.

Which of the Following Statements Do Opponents of Active Stabilization