The Policy Implication of New Keynesian Economics Is That

Multiple Choice

The policy implication of new Keynesian economics is that:

A) the government should maintain tight control over the money supply.
B) government intervention to correct problems in the economy is unnecessary and will be rendered ineffective by actions of households and businesses.
C) price stickiness and the conflict between individuals' and society's interests require consistent, full government intervention to stimulate demand.
D) none of the above.