Economists Who Favor Activist Monetary Policy Argue That

Multiple Choice

Economists who favor activist monetary policy argue that

A) the economy does not always equilibrate quickly enough at the Natural Real GDP or full-employment output and therefore needs help.
B) activist monetary policy is effective at smoothing out the business cycle.
C) activist monetary policy is flexible and flexibility is a desirable quality in monetary policy.
D) a and b
E) a,b and c