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Which of the Following Statements Is False

Question 75

Multiple Choice

Which of the following statements is false?


A) Economists who advocate discretionary monetary policy argue that it is more likely to achieve the desired economic results because the monetary authority has the flexibility to shape the best monetary policy to the existing circumstances.
B) Here is an example of zero crowding out: The government spends $100 more and the private sector doesn't spend any less.
C) Here is an example of complete crowding out: The government spends $100 more and the private sector spends $100 less.
D) Not all economists believe that rule-based monetary policy is preferable to discretionary monetary policy.
E) none of the above

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