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QUESTION:
Which of the following statements about stabilization policy is true?
a. In the short run, a decision by the Fed to increase the targeted interest rate is essentially the same as a decision to increase the money supply.
b. Congress has veto power over the monetary policy decisions of the Fed.
c. Long lags enhance the ability of policymakers to "fine-tune" the economy.
d. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy.
e. All of the answer choices are correct
ANSWER:
d. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy.
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