Excessive Use of Monetary or Fiscal Policies to Achieve Stabilization

Multiple Choice

Excessive use of monetary or fiscal policies to achieve stabilization may:

A) require the cooperation of firms and the public in order to be effective.
B) backfire if the economy becomes destabilized through erratic application.
C) never be necessary as long as the economy can rely on automatic stabilizers.
D) be better than weaker measures that may not hit the target.