The School of Thought That Monetary Policy Should Be the Main

Multiple Choice

The school of thought that monetary policy should be the main tool of stabilization policy, that is skeptical about the use of fiscal policy, and that recognizes constraints on policy imposed by the natural rate of unemployment and the political business cycle is:

A) classical macroeconomics.
B) Keynesian macroeconomics.
C) monetarism.
D) the Great Moderation consensus.