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Which Statement Is a Good Argument in Support of Policy

Question 7

Multiple Choice

Which statement is a good argument in support of policy activism?


A) Policy lags are generally longer than the time it takes the self-correcting mechanism to work.
B) Activist policies help to ensure stability of the real interest rate.
C) Well-considered policies can assist the economy's self-correcting mechanism,thus reducing the variability of inflation and unemployment.
D) all of the above
E) none of the above

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