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The Concerns of Economists Who Favor Passive Over Active Policy

Question 1

Multiple Choice

The concerns of economists who favor passive over active policy are most closely associated with their:


A) preference for using monetary policy rather than fiscal policy for stabilization.
B) view that policy made by rules is superior to policy made by discretion.
C) belief that shocks to modern economies are not large enough to require any policy response.
D) doubt that the correct policy will be implemented at the correct time.

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