Multiple Choice
If the self-correcting mechanism operates quickly,
A) direct intervention is less necessary to close a recessionary gap.
B) fiscal stimulus is far more useful in closing a recessionary gap than monetary policy.
C) monetary policy is far more useful in closing a recessionary gap than fiscal policy.
D) fiscal stimulus is ineffective and inflation will occur.
Correct Answer:
Verified
Correct Answer:
Verified
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