Which of the following statements is true?
A) Nonactivists argue that monetary and fiscal policies should be deliberately used to smooth out the business cycle.
B) Fine-tuning consists of the usually frequent use of monetary policy to counteract even small undesirable movements in economy activity.
C) Keynesians would be more likely to advocate contractionary monetary policy to correct an inflationary gap than expansionary monetary policy to correct a recessionary gap.
D) b and c
E) a,b and c

Question

Quizplus · Accepted Answer

Fine-tuning involves the frequent use of monetary policy to address small fluctuations in economic activity, which aligns with statement B.

Which of the Following Statements Is True