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According to Mainstream Economists, the Fed's Adherence to a Traditional

Question 265

Multiple Choice

According to mainstream economists, the Fed's adherence to a traditional monetary rule rather than to discretionary monetary policy is likely to


A) reduce the severity of business cycles.
B) increase the amount of instability in the economy.
C) increase the rate of inflation.
D) crowd out much-needed investment spending during times of rapid inflation.

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