Which of the following would be claimed by individuals who argue against interest rate targets for monetary policy?
A) that the necessary changes in money supply reinforce business cycles
B) that the necessary changes in money supply dampen expansions
C) that increased crowding out reduces private investment even more
D) that inflation will fall

Question

Which of the following would be claimed by individuals who argue against interest rate targets for monetary policy?  
A) that the necessary changes in money supply reinforce business cycles 
B) that the necessary changes in money supply dampen expansions 
C) that increased crowding out reduces private investment even more 
D) that inflation will fall

Quizplus · Accepted Answer

Individuals who argue against interest rate targets for monetary policy claim that the necessary changes in money supply reinforce business cycles by amplifying the effects of booms and busts.

Which of the Following Would Be Claimed by Individuals Who