When policy makers are constantly shifting back and forth between expansionary and restrictive monetary policy, this is most likely to
a. promote economic stability and stimulate employment.
b. keep the general level of prices relatively stable because the periods of restrictive policy will just offset the periods of expansion.
c. promote economic stability because changes in monetary policy can be counted on to exert a predictable impact on the economy quickly.
d. promote instability because the time lags of monetary policy are long and unpredictable.
Answers: 3
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When policy makers are constantly shifting back and forth between expansionary and restrictive monet...
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