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Which of the Following Is NOT an Argument Against Using

Question 54

Multiple Choice

Which of the following is NOT an argument against using monetary policy to prick asset-price bubbles?


A) The effect of increasing interest rates on asset prices is uncertain.
B) A bubble may only exist in some asset-prices and monetary policy will affect all asset prices.
C) Using monetary policy to prick an asset-price bubble may have adverse effect on the aggregate economy.
D) Even though credit-drive bubbles are easier to identify,they are still relatively hard to identify.

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