Multiple Choice
Which of the following should be kept in mind when policymakers consider efforts to stabilize the economy?
A) The economy responds very quickly to changes in the interest rate and changes in economic conditions are easy to predict.
B) The economy responds very quickly to changes in the interest rate and changes in economic conditions are nearly impossible to predict.
C) The economy responds to changes in the interest rate with a lag and changes in economic conditions are easy to predict.
D) The economy responds to changes in the interest rate with a lag and changes in economic conditions are nearly impossible to predict.
Correct Answer:
Verified
Correct Answer:
Verified
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