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When Trying to Stabilize the Economy, It Is Always Good

Question 39

Multiple Choice

When trying to stabilize the economy, it is always good to use a variety of fiscal and monetary policy measures since


A) the size of both the fiscal and monetary policy multipliers is uncertain
B) neither fiscal nor monetary policy works well when used by itself
C) one has only a short-run effect and the other only a long-run effect
D) this way full-employment can always be maintained
E) none of the above

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