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Stop-Go Policy That Shifts Between Expansionary Monetary Policy and Restrictive

Question 51

Multiple Choice

Stop-go policy that shifts between expansionary monetary policy and restrictive monetary policy will most likely


A) promote economic stability and attract investment.
B) lead to price stability because the restrictive policies will offset the effects of expansionary policies.
C) create an environment of uncertainty,which will result in economic instability.
D) help promote economic stability because changes in monetary policy will quickly exert a predictable impact on the economy.

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