Which of the Following Best Reflects the Nonactivist View of Stabilization

Multiple Choice

Which of the following best reflects the nonactivist view of stabilization policy?

A) Monetary and fiscal policies exert little impact on the economy.
B) Discretionary policy changes often make matters worse.
C) Fiscal policy should be used to help stabilize the economy; monetary policy should not.
D) Expansionary monetary policy is the primary source of rapid economic growth.