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The Primary Argument Against Active Monetary and Fiscal Policy Is

Question 45

Multiple Choice

The primary argument against active monetary and fiscal policy is that


A) attempts to stabilize the economy do not constitute a proper role for government in a democratic society.
B) these policies affect the economy with a long lag.
C) these policies affect the economy too quickly and with too much impact.
D) history demonstrates that interest rates respond unpredictably to active policies,leading to unpredictable effects on income.

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