Opponents of active stabilization policy
A)generally don't believe,even in theory,that fiscal policy can stabilize the economy.
B)generally agree that fiscal policy has no impact in the long run.
C)believe some effects of monetary policy may be long-lived.
D)think the Fed should simply try to fine tune the economy.

Question

Quizplus · Accepted Answer

Opponents of active stabilization policy generally agree that there may be long-lasting effects of monetary policy. However, they may not believe in the effectiveness of fiscal policy in stabilizing the economy. They also may not advocate for fine-tuning the economy through the Fed, as they may prefer a more hands-off approach to economic policy. Option A is incorrect as opponents of active stabilization policy may believe in the theoretical effectiveness of fiscal policy. Option B is incorrect as opponents of active stabilization policy may believe that fiscal policy can have a short-term impact. Option D is incorrect as opponents of active stabilization policy may not believe in fine-tuning the economy through the Fed.

Opponents of Active Stabilization Policy