-Refer to Exhibit 15-L

Multiple Choice

-Refer to Exhibit 15-l.One argument against the use of activist monetary policy claims that it can destabilize the economy.For example,suppose we are in a recessionary gap.Expansionary monetary policy is implemented,but there are so many lags that by the time it has its effect,self-regulation has already closed the gap by itself.The end result is a movement from point

A) B to point D.
B) B to point C.
C) B to point A.
D) A to point C.
E) C to point B