Why should policymakers try to stabilize the economy?
A) because shocks that cause economic fluctuations are unpredictable
B) because long lags may cause stabilization policies to have an opposite effect
C) because monetary policy affects aggregate demand by changing interest rates
D) because fiscal policy must go through a long political process
Correct Answer:
Verified
Q15: If firms were faced with greater uncertainty
Q16: In what year did the Bank of
Q17: Which of the following are both policies
Q18: The Bank of Canada raised interest rates
Q19: Many studies suggest that the first effects
Q21: Proponents of zero inflation argue that reducing
Q22: Suppose that the central bank is required
Q23: How would a permanent reduction in inflation
Q24: Why should monetary policy be made by
Q25: What does the time inconsistency of monetary
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents