Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) Activists are more likely to advocate fine-tuning the economy than nonactivists.
B) Activists believe that monetary and fiscal policies can be and should be deliberately used to smooth out the business cycle.
C) Nonactivists believe that monetary and fiscal policies cannot and should not be deliberately used to (try to) smooth out the business cycle.
D) Nonactivists favor rules-based monetary policy.
E) none of the above