In a new classical view of the world,the best anti-inflation policy,when viewed as being credible,is
A)a gradualist policy.
B)a cold turkey policy.
C)a complete monetary and fiscal reform measure.
D)an activist policy.

Question

Quizplus · Accepted Answer

In the new classical view, a credible "cold turkey" policy, which involves immediate and decisive action to reduce inflation, is seen as effective because it quickly adjusts expectations and reduces inflation without prolonged uncertainty.

In a New Classical View of the World,the Best Anti-Inflation