Asked by nicole gomez on May 18, 2024
Verified
Which one of the following statements best describes the monetarist view of economic stabilization?
A) Discretionary policies often do more harm than good.
B) Monetary policy should be used to fine-tune the economy.
C) Fiscal policy is more effective than monetary policy.
D) Both monetary and fiscal policy are unable to influence output,employment,and the price level.
E) Discretionary policies are not very helpful but neither are they particularly harmful.
Monetarist View
An economic theory which argues that management of the nation's money supply is the key to controlling inflation and other forms of economic instability.
Economic Stabilization
Efforts or policies aimed at maintaining economic growth, controlling inflation, and reducing unemployment to achieve a stable economy.
Discretionary Policies
Economic strategies and decisions made by a government that can be altered or adjusted in response to changing economic conditions.
- Investigate the influence of fiscal and monetary practices on the balance of the economy.
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Learning Objectives
- Investigate the influence of fiscal and monetary practices on the balance of the economy.
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