
Politicians in a democratic society may be shortsighted because of their desire to win reelection; thus,the political process can
A) impart an inflationary bias to monetary policy.
B) impart a deflationary bias to monetary policy.
C) generate a political business cycle in which, just before an election, expansionary policies are pursued to lower unemployment and interest rates.
D) cause both A and C of the above to occur.
Correct Answer:
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