Multiple Choice
Which of the following does NOT represent the broad consensus among macroeconomists?
A) Monetary policy should play the main role in stabilization policy.
B) The central bank should be independent, insulated from political pressures, to avoid a political business cycle.
C) Discretionary fiscal policy should be used sparingly because of policy lags and the risks of the political business cycle.
D) Discretionary fiscal policy can lower the natural rate of unemployment.
Correct Answer:
Verified
Correct Answer:
Verified
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