Which of the following is not an issue with using active monetary policy to reduce business cycles?


Score: 0 of 1 pt 21 of 27 (24 comple Concept: Active Monetary Policyl Bus Cyc Which of the following is not an issue with using active monetary policy to reduce business cycles? O A. Active monetary policy can sometimes create procyclical impacts on macroeconomic variables. O B. There is a lag in the Fed getting accurate data and being able to recognize problems existing in the economy. O c. When the Fed engages in a policy action, it takes time before the action will impact the desired economic variables. O D. Real GDP and employment changes from monetary policy actions can move in a countercyclical manner. Click to select your answer and then click Check Answer. parts showing

Answer

The correct answer is D. Countercyclical impacts due to monetary policy changes will not be an issue under business cycles. The correct answer is D.

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