When monetary policies result in a worsening of economic performance,the least likely explanation is ________.
A)a political business cycle
B)changes in one or more key structural parameters of the economy
C)a policy-induced change in the expectations and behaviors of households and businesses
D)faulty interpretation of incomplete and ambiguous economic data

Question

Quizplus · Accepted Answer

Political business cycles refer to the manipulation of economic policies by governments for political gain, typically leading to improved economic conditions before elections. Therefore, they are less likely to be an explanation for a worsening of economic performance due to monetary policies compared to the other options, which directly relate to the challenges and uncertainties in policy-making and economic forecasting.

When Monetary Policies Result in a Worsening of Economic Performance,the